14 June 2013 17:01 [Source: ICIS news]
LONDON (ICIS news)--European expandable polystyrene (EPS) prices have risen by around €20/tonne ($27/tonne) on average in June, according to players in the market. The increase is the first to be achieved by suppliers in three months, following a fall in April and a minor decline in May.
The rise also represents a slight improvement in producer margins, due to an increase in the spread over styrene monomer costs. Sources agreed on Friday, 14 June that, where a €20/tonne increment was secured, it reflected little more than a rounding up of the €14/tonne rise in the styrene barge contract price.
Producers aimed for a bigger hike and some business remains to be settled. One buyer said it had had to accept an increase of over €30/tonne, and a producer stated that it was obtaining some increases of that size, while still hoping to achieve larger increases in other unsettled contracts. A rise of more than €20/tonne, however, is seen as unrepresentative.
The small increase, compared with raw material cost, is attributed to an improvement in demand. June is one of the strongest months of the year for the construction industry, which is crucial for EPS insulation sales.
$1 = €0.75
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