Styron said Monday it aims to raise polycarbonate prices by Eur200/mt ($267/mt) from July 1, as contract terms allow, to compensate for dwindling margins.
It said margins had been declining since the start of 2012. It has already begun discussing the increases with its customers.
"Since early 2012, the margins that have prevailed in the PC industry have declined to astonishingly low levels," said Peter Whitmore, Styron business director polycarbonate, compounds and blends.
"There is a distinct lack of profitability, particularly in the lower tier of the PC market in Europe. Fundamentally, prices must improve in order to restore some margin in PC," he added.
Feedstock costs have risen by Eur374/mt or 56% since the start of 2012.
Monthly benzene contract prices rose steadily to settle at Eur1,045/mt in June 2013, up from Eur671/mt in December 2011.
Polycarbonate is made from bisphenol A, which is produced from benzene, a key aromatic. It is used in a number of consumer and construction applications.
