INEOS Styrolution recently announced price increases for polystyrene (PS) in Europe of €85/mt in July. This is broadly in line with the increase in costs. As activity is increasing, upstream costs are on the way up. Plus, demand is holding up well as buyers, reportedly, are gradually increasing volumes intake.
This comes as no surprise as players had anticipated a string of increases after the latest slump. The press note said that prices will increase for both general purpose polystyrene (GPPS) and high impact polystyrene (HIPS). It also points out a surcharge of €100/mt for HIPS.
INEOS Styrolution is a global styrenics supplier and a major producer of PS.
While demand is getting better and costs are increasing, there is also an element of seasonality that should support price increases during this time of the year. This trend will probably continue until September.
Polystyrene is used to make many products, in sectors such as packaging, appliances and construction. Its major feedstock is styrene. And prices tend to move very closely with costs.