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British Rubber & Polyurethane Products Association

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Producers win polymer price hike in March

Posted on 30 March 2015

After falling since the middle of last year, European standard thermoplastic prices rebounded sharply in March. Producers pushed through margin-extending price increases following a large upswing in petrochemical feedstock costs, better demand and tightening supply.

Crude oil prices rose from just less than $50 (£36)/barrel to around $65 (£48)/barrel during the month of February. As a result, March petrochemical feedstock contract prices were settled at a substantially higher level. Styrene monomer led the way with an astonishingly high €175 (£128)/tonne leap in the March contract price. The ethylene and propylene contract prices saw respective gains of €100 (£73)/tonne and €105 (£77)/tonne.

Plastic producers took advantage of the upturn in feedstock costs to force through price rises exceeding the rise in their cost base.

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