BP seeks DM0.3/kg price hike for Europe EPS - sources

24 July 2001 16:47  [Source: ICIS news]

LONDON (CNI)--Anglo-American oil and chemicals giant BP plans to raise prices for expandable polystyrene (EPS) in Europe by DM0.3/kilogramme from 1 September, according to market sources on Tuesday.

The price hike is being sought in response to sharp decreases in EPS prices, which have hit margins in recent months.

Buyers, however, remain sceptical about the proposed increase, given the persistent weakness in the construction sector - particularly in the key German market.

July prices for block EPS are currently DM1.80-1.90/kilogramme, according to CNI's sister pricing service ICIS-LOR. These prices are expected to remain steady through August, sources said.

However, much depends on the Q3 styrene monomer (SM) contract, which is expected to be settled imminently. Agreements are expected to be reached at about Euro70-75/tonne below the Q2 level of Euro700-725, said the sources.

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Author: Anna Jagger
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