Styron Europe GmbH seeks HIPS/GPPS price differential of 150 Euro per metric ton

Styron Europe GmbH and its affiliate companies in Europe target a price differential of 150 Euro per metric ton to offset the price difference of raw materials for HIPS versus GPPS.

HIPS (high impact polystyrene) resins differentiate from GPPS (general purpose polystyrene) resins by addition of polybutadiene rubber (PBR). While feedstock costs have risen in general since the beginning of 2011, the costs for butadiene (and consequently PBR) have increased disproportionally and with increasing pace in the course of this year: In the same period the price for butadiene has increased by 73% on a contract basis and by 103% on a spot basis, negatively impacting the margins for HIPS since the price differentials versus GPPS have not reflected these additional costs, explains the company.