Germany's BASF has started publishing a new pricing system for its polystyrene resin. This is considered to improve advance planning, safeguard margins and the long-term stability of the entire value-added chain, reducing risks.
This system considered to be based on Gross Market Price (GMP) mechanism, is likely to be established by BASF proactively and made known to customers each month, both through personal contact and BASF's website.
GMP is based on the current price for raw materials (styrene, benzene) and on the relation between supply and demand. Discounts will be negotiated monthly between the customer and the sales representative. The discount would be based on the monthly purchase volume, customer size and BASF's supply share.
04-Jul-05 
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