Styrolution is seeking to expand polystyrene margins following the settlement of the June styrene contract price, the company said late Monday.
With the Northwest European styrene contract agreed at Eur1,360/mt FOB ARA ($1,850/mt), down Eur45/mt from the May CP of Eur1,395/mt FD NWE, the Germany-headquartered styrenics business said that it would try to boost gross market price margins by Eur10/mt, following an announcement that it would cut general purpose polystyrene grade prices by Eur35/mt.
In addition, the company said that it intended to apply a premium of Eur105/mt for its high impact PS resin sales in June.
The falls seen in both polystyrene and styrene costs reflected a similar decrease in feedstock costs as well as bearish market fundamentals, market sources said.
The NWE June benzene contract price settled at Eur977/mt or $1,330/mt CIF ARA on Friday, a decrease of Eur71/mt and $119/mt from the May CP of Eur1,048/mt and $1,449/mt CIF ARA.
"In reality, the (PS) market is still quite long, the feedstocks have gone down Eur50-55/mt depending on your plant economics and the only expectation is that we may see a bit of tightness due to a couple of turnarounds but we will see," said a consumer Monday.
A producer admitted that out of the three principal consuming segments, polystyrene was the weakest link in the styrenics chain. EPS, however, was registering "double-digit" volume growth.
The fall in June polystyrene prices contrasted with a rise in May PS contract prices, with the NWE net general purpose May polystyrene price assessed at Eur1,565/mt FD NWE, up from the April CP of Eur1,545/mt FD NWE, according to Platts data.
Polystyrene resin is used in a variety of plastic applications mainly in the construction and automotive sector.
