Mexico tariff reduction yet to impact EPS prices

28 November 2006 22:10  [Source: ICIS news]

HOUSTON (ICIS news)--Mexico’s reduction of its import tariff for Asian expandable polystyrene (EPS) resin has yet to have any effect on domestic EPS prices, sources with the two local producers said on Tuesday.

The import tariff reduced to 10% from 15% effective on 30 September. At 15%, the import tariff had been an effective barrier for Asian imports.

With the new import tariff, Asian beads could reach buyers anywhere in Mexico at about 86-87 cents/pound DEL, a transformer said. This is below current prices at 89-93 cents/pound, according to global chemical market intelligence service ICIS pricing.

One producer was more cautious, saying the tariff reduction is too recent to tell with certainty if Asian EPS imports will become a factor in Mexican prices.

The new tariff was listed in government websites and applies also to moulded products of expanded polystyrene (peanuts) used for packaging applications.

The entry port for Asian EPS is likely to be Manzanillo on Mexico’s west coast, according to sources.

The Mexican EPS producers are Polioles and Idesa.

By: George Martin
+1 713 525 2653

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