Styron Europe will seek to increase general purpose and high-impact polystyrene prices in January by Eur110/mt ($143/mt), the company said Friday.
"The price increase responds to the rising costs associated with the manufacturing of polystyrene grades in Europe," the company said in the statement.
The polystyrene price increase follows the settlement of a January styrene monomer contract at Eur1,488/mt ($1,963/mt) FOB ARA on Thursday, up Eur60/mt from the December contract price of Eur1,428/mt.
The rise in polystyrene costs was prompted by the settlement of the January benzene CP at Eur1,153/mt, or $1,529/mt, FD NWE, its highest yet settlement, negotiating parties said Monday.
The benzene settlement represents an increase of Eur69 and $121 compared with the November contract price of Eur1,084/mt and $1,408/mt FD NWE.
European general purpose PS prices were assessed by Platts this week at Eur1,560/mt, while high impact prices were assessed at Eur1,680/mt FD NWE.
"Styrene producers lost quite a bit of margins in December," said a source. "I won't be surprised if more people choose to act like Styron, it is ultimately about economic optimization of the sites."
In December, Styron shut both its styrene facilities at Bohlen and Terneuzen on poor economics.
Bohlen has a capacity to produce 300,000 mt/year while Terneuzen has a nameplate production capacity of 500,000 mt/year.
By and large, the styrene/benzene spread in December has hovered at around $93-130/mt -- $120-207/mt below the required breakeven spread of $250-300/mt for regional producers, depending on energy costs and how efficient the plant is.
In contrast to this, the naphtha-benzene spread (a measure of benzene profitability), hit a six-month high of $588.50/mt on December 28, compared with the June 13 level of $586.75/mt. These levels are above breakeven cost level.
