BASF and Dow say price rises are imperative

A shortage of benzene has led to the material, a key component in polystyrene, more than doubling in price this year. Benzene accounts for 80% of styrene monomer content, with ethylene making up the remainder, and is now selling at close to E900 a tonne for August, an increase of E123 a tonne from the July level.

The cost push is prompting a series of rises in the price of polystyrene and an increasingly tough approach by manufacturers. Polystyrene majors BASF and Dow told PRW.com today that the pressure on margins from the cost push makes it imperative that the current increases of up to E200 a tonne are implemented.

BASF issued a statement last week in which Wilfried Hansel, European styrenics division head, said the company would not supply material unless it received the higher prices it is seeking (PRW.com 5 August). So far this year, the polymer rises have failed to keep pace with the feedstock spiral, BASF says.

At Dow, Ernesto Pousada, European product director for polystyrene, also delivered a blunt message on polystyrene pricing. “It’s take it or leave it, if they don’t pay then we don’t buy the benzene,” he said, adding that Dow has already taken one quarter of its PS capacity off line because of the margin situation.