Switzerland-based plastics maker Styron has increased its November list price for styrene butadiene and acrylic latex products despite feedstock prices falling, the company said in a statement Monday.
The company said it plans to increase the price of these products by Eur50/mt ($62/mt) despite a fall in a number of key raw material costs in Europe, including butadiene, which dropped by Eur100/mt in November to Eur830/mt FD in Northwest Europe.
Since August 2011, when butadiene contracts hit a high of Eur2,525/mt FD NWE, monthly prices have slumped 67%. The NWE November styrene contract price settled at a rollover of Eur1,390/mt ($1,755/mt) FOB ARA.
Using typical butadiene styrene production ratios of 70:30, the cost of production would imply a Eur70/mt cost reduction from butadiene alone.
In addition, the cost of acrylonitrile, a feedstock for acrylic latex, has fallen by 32% since it hit a record high of $2,792.50/mt on May 3, to be assessed most recently at $1,885/mt CIF Med.
“This [latex] price increase is necessary in order to address the significant margin erosion which we have seen since 2008 and to allow us to continue to provide the high quality of products and service our customers receive from Styron,” said Jan Muller, Styron global business director, latex.
– Platts.com
