01 June 2006 11:30 [Source: ICIS news]
SINGAPORE (ICIS news)--Indian polystyrene (PS) producers Supreme Petrochemicals and LG Polymers have hiked the domestic prices of two grades for the third time in a month by Rs3/kg or up to 5%, sources close to the companies said on Thursday.
The higher general purpose PS (GPPS) and high impact PS (HIPS) prices were due to rising feedstock costs, and they did this despite customer resistance, they added. The hikes will be effective from 1 June.
The producers hiked GPPS prices to Rs63/kg ex-factory and high impact PS (HIPS) prices to Rs65.50/kg ex-factory.
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"Producers were forced to increase PS prices again this month to maintain sustainable margins," said one source.
Customers were expected to resist the price hikes initially, but were likely to accept them in a few days, the source said. However, producers were concerned about the slow pick-up in PS demand despite the advent of summer, traditionally a high demand season.
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