06 January 2012 11:13 [Source: ICIS news]
LONDON (ICIS)--Styrolution is targeting a €145/tonne ($186/tonne) increase for its European January polystyrene (PS) because of higher styrene and butadiene costs, a source at the styrenics producer said on Friday.
The styrene barge contract for January was settled at €1,214/tonne FD (free delivered) NWE (northwest Europe), up by €120/tonne from its December level.
Butadiene is also up, with the January contract settling at €1,700/tonne FD NWE, up by €50/tonne from December. Butadiene is used in the manufacture of high impact polystyrene (HIPS).
US-based producer Styron has already announced that it will target a €135/tonne increase for January PS.
Buyers have become accustomed to PS pricing moving in line with its main feedstock styrene, and they are now expecting to be paying much higher prices when they settle later in the month.
2012 is expected to be a difficult year in the European PS arena as new capacity comes on-stream.
European producers have managed to maintain a fine supply/demand balance in the recent past, closing down capacity where necessary and cutting back production in line with dwindling demand.
PS is used widely in packaging and in the manufacture of household goods.
Styrolution is 50:50 joint venture between BASF and INEOS, comprising the key styrenics activities of the two partners. It began trading on 1 October 2011.
($1 = €0.78)
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