Synthos’ PS margins to improve, EPS margins to remain flat - Erste

05 May 2011 16:33  [Source: ICIS news]

LONDON (ICIS)--Poland’s Synthos should achieve a big improvement in polystyrene (PS) margins this year but its expandable polystyrene (EPS) margins are set to remain flat unless there is a sustained surge in the construction segment, Erste bank said on Thursday.

Market data on styrenics indicated a mixed environment, added Erste analyst Tomasz Kasowicz.

“Contrary to the EPS market, the PS market in Europe has improved significantly due to shortages in supply resulting from post-crisis liquidations. Therefore, product/feedstock margins on the PS market are robust,” Kasowicz said.

However, Kasowicz added there were signs of uplift in the construction market which could significantly improve EPS margins.

Erste predicted that the PS product/feedstock margin for the company's Polish subsidiary, Synthos Dwory, would be €775/tonne ($1,157/tonne) for 2011 against €483/tonne in 2010, while the PS product/feedstock margin for its subsidiary located in the Czech Republic, Synthos Kralupy, would be €787/tonne against €520/tonne in 2010.

For EPS, the bank forecast the product/feedstock margin for Synthos Dwory would amount to €546/tonne in 2011 versus €504/tonne in 2010 and for Synthos Kralupy it would edge up to €557/tonne in 2011 from €540/tonne in 2010.

Erste expected Synthos to sell 125,000 tonnes of PS and 154,000 tonnes of EPS in 2011.

($1 = £0.67, €1 = £0.90)

By: Franco Capaldo
+44 (0)20 8652 3214

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