28 June 2013 13:46 [Source: ICIS news]
LONDON (ICIS)--Polystyrene (PS) prices have risen by an average of €20/tonne in June as producers attempt to boost their margins, market players said on Friday.
Although the PS price rise exceeds that of styrene it has failed to meet targets set by some producers. Earlier in the week, one supplier said it was still going for an increase of €30/tonne, but this is widely viewed as unrepresentative.
One buyer said sellers "started with plus €30/tonne but settled for plus €20/tonne."
As usual, there are some variations in the results seen by individual companies. A large supplier said that, with the bulk of its contracts now finalised, it had achieved a rise of €20-25/tonne, a statement that another supplier confirmed for its own sales.
A large buyer, by contrast, said it had agreed an increase of only €15/tonne with all its suppliers.
Producers have been able to secure a larger increase than the styrene contract rise, mainly because of an improvement in demand. Although there are marked differences in perception between sellers and buyers about demand, it is agreed that consumption has picked up since mid-May and producers are running their plants at higher operating rates.
The net price for general purpose polystyrene (GPPS) is assessed at €1,570-1,610/tonne FD (free delivered), according to ICIS. A trader said on Friday that this was a representative range for smaller buyers, although it believed larger consumers would be able to obtain material at around €1,520/tonne FD.
($1 = €0.77)
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