03 March 2011 17:47 [Source: ICIS news]
LONDON (ICIS)--INEOS Styrenics is targeting a €50/tonne ($69/tonne) increase for March polystyrene (PS) in Europe following the settlement of the first styrene barge contract on Wednesday at an increase of €39/tonne, at €1,359/tonne FD (free delivered) NWE (northwest Europe), the company said on Thursday.
“The price increase is necessary due to the continued escalation of key raw materials required to manufacture PS products,” the company said in a statement.
General purpose PS (GPPS) prices were trading at around the €1,600/tonne FD NWE level at the end of February and buying sources generally expected to be paying increases in March, as permanent capacity closures in 2009 had led to a tight supply-demand balance in the European market.
Styrolution had already announced a €40/tonne target increase for its March PS business.
PS buyers had been subject to increases for several successive months, paying increases amounting to €250/tonne in the past three months.
GPPS is used widely in the food packaging industry.
($1 = €0.72)
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