Poland’s Synthos PS business delivering small profits at best: bank

17 April 2013 15:46  [Source: ICIS news]

LONDON (ICIS)--The polystyrene (PS) business of Poland’s Synthos is operating on the verge of profitability, with no clear positive trends in its market having emerged in the first quarter of the year, Raiffeisen Centrobank (RCB) said on Wednesday.

“Prices of polystyrenes remain stable at a high level; however, due to the price growth of raw materials the company is struggling to deliver even a small operating profit margin,” said Dominik Niszcz, an analyst at Austria-based RCB.

Month on month, March’s PS prices in Poland – where Synthos sells 61% of its PS, according to company figures – averaged up slightly, but broadly in line with the increase in feedstock costs, he added. Synthos sells 23% of its PS in western Europe and 16% in eastern Europe.

Expandable polystyrene (EPS) rose to zloty (Zl) 6,960/tonne ($2,231/tonne, €1,693/tonne) in March from Zl 6,890/tonne in February; high-impact polystyrene (HIPS) edged up to Zl 7,160 from Zl 7,110l; and general purpose polystyrene (GPPS) edged down to Zl 6,560 from Zl 6,590, RCB said.

Synthos generates 40% of its sales revenues from PS, while more than 50% derive from synthetic rubbers, the bank added.

The company’s stated EPS capacity is 200,000 tonnes/year, with its capacity for other PS is given as 130,000 tonnes/year.

($1 = €0.76)

($1 = Zl 3.12, €1 = Zl 4.11)

By: Will Conroy
+44 20 8652 3214

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