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August 31, 2008 07:00 AM

PS up as costs surge

Plastic News Europe
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    In June, polystyrene producers were calling for price increases of E100-120/tonne. An unexpectedly large increase in the cost of styrene monomer, averaging E91/tonne, toughened the producers' price stance. As a result, notations increased by E80/tonne against May settlements.

    The current high price of polystyrene appears to be affecting overall demand, with a particularly poor order intake reported for June. Producers will be watching closely to see whether the widening price differential between PS and PP is leading to product switching for some applications such as food packaging.

    This month, styrene monomer is expected to go longer and so the cost pressure on producers for July is likely to be much less.

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