Koos van Haasteren explains why and how market attitudes must change

Koos van Haasteren explains why and how market attitudes must change

Polyolefin market attitudes need to change in recognition of the higher cost environment in the industry, is the warning from Sabic’s European managing director polymers Koos van Haasteren. Citing BP’s decision to sell its petrochemicals business as evidence of the dissatisfaction with the sector’s results, van Haasteren told PRW.com yesterday that the traditional price levels were no longer applicable.

The conventional upper and lower price levels for the market have been E1,000 and E500 a tonne, he noted, based on an oil price in the range $15 (E12) to $25 (E21) a barrel. But in future, the limits need to be E1,300 and E800 a tonne, to take account of the changed cost base of the industry. “The market psychology needs to change,” van Haasteren said.