MOSCOW (MRC) -- On the increased feedstock cost and low profit margin, European makers have been intending to increase their price offers by EUR40-50/tonne in October for the past two months, report MRC analysts.
The contract cost of styrene-monomer - feedstock for polystyrene production - has risen by EUR8/tonne. Most PS makers have announced a potential increase in October price offers on average by EUR40/tonne in order to make up for the growth of production costs and to increase profit margin.
Last Thursday, on 4 October, Styrolution voiced its intention to increase its price offer by EUR50/tonne for October shipments. Next day, Styrolution also reported the increase of EUR50/tonne in its press release. Total is expected to raise its price offer by the same amount; however, the company’s confirmation has not been received yet.
Producers insist that the profit margin has decreased significantly over the past two months despite high prices in the PS market. However, they understand that the current PS quotations in Europe are at a high level and the further increases may affect consumption.
Buyers have expected polystyrene prices to remain unchanged in October after an insignificant increase in the cost of styrene monomer. It is assumed that negotiations on the formation of the contract PS price in October will be difficult.
MRC