INEOS Styrolution seeks PS price increases in March of €95/mt versus February, accourding to a recent note on its website.
This increases on general purpose polystyrene (GPPS) is closely in line with the increase in the styrene monomer contract in March.
The company also noted that a surcharge of €120/mt will apply for high impact polystyrene (HIPS).
The forecasts had expected stability in March as prices were already high and supply was improving in February.
However, the war in Ukraine changed the outlook firmly to the upside. From a cost perspective, the worsening of the crisis is causing another spike in energy prices.
Producers will face another period of cost increases that will be passed on to their customers.
From a market perspective, the conflict raised uncertainty on prices but also on supply.
Therefore, if buyers had been hesitating when supply was improving and prices were stabilising and even decreaseing, they will reassess this stance.
An element of panic-buying will probably support demand and allow sellers to pass on the cost increases.
The conflict has reinforced the view that prices will bounce around current high levels for most of this year.
The conflict in the Ukraine will surely lead to an upward revision of the price forecasts on most polymers.