Styron plans to increase polycarbonate prices in Europe by Eur230/mt ($294/mt) in December due to squeezed margins, it said in a statement Wednesday.
"Following the elevation in costs of the key raw materials associated with the production of Calibre and Emerge as well as a decline in polycarbonate pricing over the past few months, PC margins have eroded steadily," Styron polycarbonate product manager Nicolas Joly said.
"This is at a time when we continue to see demand for PC growing at a steady pace in the global market. With margins well below acceptable levels in Europe, this increase is essential to move returns back towards minimum sustainable levels," Joly added.
Joly wouldn't comment on the outright price planned for December.
Platts does not assess polycarbonate prices but, since the beginning of the year, phenol spot prices -- one of the principle feedstocks used in the production of polycarbonate -- have increased by Eur305/mt to be assessed at Eur1,290/mt FD NWE.
However, at the same time, NWE monthly benzene contract prices -- the principle feedstock used in the production of phenol and bis-phenol A -- have increased by Eur361/mt to Eur1,032/mt FD NWE, according to Platts data.
In general, global demand for polycarbonate products has been stunted by the weak economy and the eurozone crisis and weak demand. This pressure has kept a lid on prices and weakened margins, sources said.
One phenol producer this week described the state of the polycarbonate and epoxy resins market as "miserable," adding: "We are in a scenario of low domestic demand and no exports to China. When you connect the dots, it is not difficult to figure out what the state of the industry is."
Polycarbonate is a thermoplastic polymer that is used in the production of automotive, electronic, automotive, aircraft and security components.
