17 June 2013 10:47 [Source: ICIS news]
(recasts, clarifying Styron has an operating centre, but is not based, in Switzerland)
LONDON (ICIS)--Styron Europe is targeting a €200/tonne ($267/tonne) price increase for all its polycarbonate (PC) products, effective from 1 July or as contract terms allow, the company said in a statement on Monday.
The company, which has a European operating centre in Horgen, Switzerland, said it is implementing the price increase to improve margins from their present unacceptable level. Styron's global headquarters/operations centre is in Philadelphia, Pennsylvania, in the US.
“Since early 2012 the margins that have prevailed in the PC industry have declined to astonishing low levels," said Peter Whitmore, business director polycarbonate, compounds and blends at Styron.
“There is a distinct lack of profitability, particularly in the lower tier of the PC market in Europe. Fundamentally, prices must improve in order to restore some margin in PC,” said Whitmore.
There was a good deal of scepticism from buyers, however, some of which have already made it clear they expected a rollover to slight decrease for next quarter.
“They have poor margins, but this has been the case for the past months and they haven’t managed to improve them, so why now?” said one buyer.
Another large buyer said it did not expect an increase as there was too much material in the market for such an attempt to be successful.
PC prices in the second quarter were assessed by ICIS at €2.27-2.35/kg, FD (free delivered) NWE (northwest Europe).
($1 = €0.75)
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