INEOS NOVA to curtail Europe PS production by 30% & increase premium for HIPS

01-Oct-08

Owing to record low margins of Polystyrene in September and a sluggish demand, INEOS NOVA-a JV of INEOS and NOVA Chemicals, has recently announced curtailing of its European Production by 30% in October. Accordingly, INEOS NOVA aims to immediately restore acceptable margins to its European Polystyrene business in October and will endeavour to retain a significant part of the Styrene Monomer Contract Price drop, from September to October. This decision is intended to balance the demand and supply of Polystyrene. Besides, INEOS NOVA will increase the premium for High Impact Polystyrene grade (HIPS) a minimum EUR 80 plus over General Purpose Polystyrene grades (GPPS) owing to continuous rise in prices of butadiene rubber and further rise expected in Q4.