Chemical giant BASF recently increased the prices for its plastic material Styrolux by €200 per metric ton in Europe as of 1 August, blaming the rising cost of raw materials. The price hike for Styrolux, a styrene-butadiene copolymer used in extrusion applications in food packaging, reflects an industry-wide increase in the cost of packaging materials. A month ago, BASF announced that it was to raise its European price for polystyrene (PS) by €200 per metric ton in response to what it calls totally unsatisfactory margins and earnings. Polystyrene, a standard polymer in BASF's range of styrenic plastics, is used extensively in refrigerator linings and food packaging. As with Styrolux, one of the main raw materials for polystyrene is benzene, which is used in the production of styrene, the pre-cursor of polystyrene. The price for benzene has now reached historically high levels. This provides an opportunity for biodegradable materials to get into the packaging market.