Asian Crisis Begins to Hit Europe.

After chaos in february that resulted in a price plunge, European polystyrene (PS) prices have shot up by 5 pfennigs-10 pfennigs/kg as producers push to improve their low profit margins. General-purpose grade has risen to DM.55-DM1.70/kg and high-impact material to DM1.65-DM1.80/kg. Producers are counting on slow but steady demand growth to support the price this year. According to one analyst, European PS usage of 2 million m.t. in 1997 is expected to rise 2% in 1998.

For the past 18 months profit margins in Europe have been so low that two producers have exited the business: Huls sold its operations to BP Chemicals (CW, Jan. 14, p. 14) and Neste sold to Radnor late last …