Europe EPS producers aiming to raise prices in July

05 July 2013 17:16  [Source: ICIS news]

LONDON (ICIS)--European expandable polystyrene (EPS) producers are aiming to raise prices in July, with two suppliers on Friday saying they were considering increments of up to €20/tonne (€26/tonne).

However, the approach of sellers appears to be rather tentative and they acknowledge uncertainty about what will happen to EPS values.

The minor reduction of €4/tonne in the styrene monomer barge contract failed to give the market much direction from the point of view of upstream raw material costs, and one supplier commented that there was "still a bit of a mist" concerning the short-term prospect for prices.

Another said the "major part" of its accounts were not yet settled and "the real deal-making will start next week", although they would strive for a price increase. The producer added: "EPS margins are squeezed. In order to return them to a healthy level we need to push for a price rise. Overall, it will depend on demand."

Demand is usually at or near its strongest at this time of year but volumes so far in 2013 have disappointed. One producer said sales up to the end of May appeared to be around 8-10% lower than in the same period last year.

A buyer said: "Increases aren't in the picture." It had already settled with one supplier at a rollover, although the supplier's initial proposal had been an increase of €20/tonne. It was still negotiating with another supplier, in the hope of obtaining a small reduction.

($1 = €0.77)

For more on EPS visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect


By: Peter Gerrard
+44 208 652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index