02 August 2013 17:15 [Source: ICIS news]
(adds detail on Versalis PS price rise throughout)
LONDON (ICIS)--In the wake of the €47/tonne ($62/tonne) hike in the styrene monomer barge contract price for August, Italy-based producer Versalis has decided to raise its polystyrene (PS) prices by €70/tonne, joining other European producers in nominating an increase that exceeds the styrene rise.
PS producers all year have been intent on improving their margins, and this month appears to be no exception.
Earlier on Friday two of the suppliers said they would raise their prices, with the intention of expanding the spread between monomer and polymer.
At that stage, Versalis had not yet decided on a specific number for its August nomination but, by the end of the day, it had resolved to seek the €70/tonne rise.
The broad reaction from the buy side of the market is not yet known, but one large buyer in the packaging sector responded to the styrene hike and it's probable repercussions with anger.
It asserted that it cancel all its current orders and not make any purchases for August, able to do this because it had adequate stocks.
The PS value is currently assessed at €1,570-1,610/tonne FD (free delivered) by ICIS Pricing's distribution indicator.
($1 = €0.76)
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