Home Latest PS

PS

TRINSEO ANNOUNCES TRIPLE-DIGIT INCREASES
high prices

After the spike of more than €200/mt of the styrene contract price in November, Trinseo announces triple-digit increases on ABS, SAN, and PS.


However, the increases are more than the cost increase of the main raw material styrene. This is most probably to do with the recent surge in utility costs.

INEOS Styrolution has also announced similar increases on polystyrene (PS), namely €300/mt and higher than the increase in the styrene contract of €232/mt.

Trinseo’s increases on general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) are €290/mt.

While the increase on styrene acrylonitrile (SAN) is €240/mt. And acrylonitrile butadiene styrene (ABS) is €230/mt.

There is a strong chance that the announced increases will be accepted. The markets remain highly uncertain and volatile amid supply shortages, especially for ABS but also for PS. As such, buyers may have little choice but to accept the entire increases.

STYROLUTION SEEKS BIG HIKES ON PS PRICES
Polystyrene Packaging

INEOS Styrolution seeks big hikes on polystyrene (PS) prices after the tripe-digit spike in the styrene contract in November.


While styrene increased around €230/mt, INEOS is seeking an increase of €300/mt on GPPS in November. A surcharge of €120/mt will apply on HIPS.

The announced increase is somewhat higher than the increase in the monomer contract. This is most likely to do with the need to recover the recent increases in utility costs.

A jump in gas and electricity prices during the past few weeks caused a big surge in utility costs for all polymer producers.

In response to the increases in utilities, some polymer producers announced surcharges.

And while not all companies announced surcharges, November is likely to see price movements reflecting the the higher cost of utilities.

PS PRICES SETTLED HIGHER IN OCTOBER
Polystyrene Packaging

PS prices settled higher in October amid tighter supply conditions, according to GC Intelligence price assessments.


Monthly prices increased €25/mt from September to October for both HIPS and GPPS. This was closely in line with the movement in the styrene contract price.

Demand showed no signs of slowing down in most market segments, particularly in construction and appliances.

Supply, however, has become short, owing to some unexpected production issues along the value chain and ongoing logistics delays.

Furthermore, the shortage of tankers continued to reduce imports, adding more strain on supply as buyers were having to rely more on domestic product.

The outlook sees triple-digit increases in November on the back of higher raw material costs and good demand.

The recent spikes in utility costs will also place pressure on prices in November.

As market disruptions continue, the polystyrene (PS) market looks set to remain volatile in 2022, with prices likely to remain at current high levels.

TRINSEO SEEKS UTILITIES SURCHARGE

Trinseo seeks utilities surcharge of €200-300/mt on styrenics and polycarbonates products from 1 November.


Trinseo will implement €200/mt surcharge on the following products: styrene monomer (SM); polystyrene (PS); styrene acrylonitrile (SAN); and acrylonitrile butadiene styrene (ABS).

However, a surcharge of €300/mt will be implemented on polycarbonate (PC), PC/ABS Resins, and ABS Long Glass Fiber (ABS LGF).

The company noted that “these surcharges are in response to unprecedented and escalating pressure from energy prices and apply to all current agreements and contracts.”

Trinseo is not the only company to have take the step to implement surcharges in response to the spike in energy prices.

Many other polymer producers are taking the same step. For example, Celanese is applying a surcharge of €500/mt on POM.

If energy prices will continue to increase amid short supply of many polymers, producers will probably succeed in passing on the extra costs.

The higher energy costs adds yet another factor fuelling volatility across the entire value chain of the polymer industry.

As the increasing turmoil in many markets reduces visibility further, many players expect a prolonged volatile period ahead.

Trinseo announces price increases in October on ABS, SAN and PS, according to a note on the company’s website.

The increases on spot and contracts will be effective from 1 October, 2021.

General purpose polystyrene (PS) and high impact polystyrene (HIPS) will increase €55/mt.

Acrylonitrile Butadiene Styrene (ABS) will increase €60/mt.

And Styrene Acrylonitrile (SAN) will increase €45/mt.

Trinseo is a global materials company and manufacturer of plastics and latex binders.

Meanwhile, the latest GC Intelligence market analysis suggests conditions remain volatile in the styrenics markets.

ABS is still critically short, with production issues adding further pressure on an already tight market.

SAN supply is in better shape, but the European market is far away from being awash with volumes.

And the PS market, having improved in the summer, has become tight again due to production issues.

Newer Posts