PS prices posted triple digit increases in July versus June in Europe after a surprise hike in raw materials costs.
With the price of benzene increasing €386/mt, the styrene monomer price rose €155/mt.
There was little polystyrene (PS) buyers could do but to absorbe another big increase in July.
However, with fundamentals remaining soft, there was room to negotiate.
The outcome was a rather wide range of price increases, from €50/mt to €150/mt.
This suggests that on some accounts, suppliers had to once again accept a decrease in margins.
The falling margins is a trend that has been developing since the second quarter throught the polymer industry.
As strong signals point to a petenital sharp fall in economic activity, there is a strong chance that PS prices will continue to post decreases at least until the end of the year.