PS buyers see N American prices flattening out

06 August 2008 22:48  [Source: ICIS news]

HOUSTON (ICIS news)--North American polystyrene (PS) prices have likely peaked, but at least one seller has announced hikes for mid-August implementation, buyers said on Wednesday.

“The general mood is that the market has been stretched to the max,” a buyer said.

Upstream benzene prices were expected to follow the recent moderating trend in crude oil prices, the source said.

The mid-August PS increase nomination was 4 cents/lb ($88/tonne) for general purpose polystyrene (GPPS) and 5 cents/lb for high impact polystyrene (HIPS).

It was not yet clear whether other PS producers would issue nominations.

Buyers and distributors said GPPS pricing has increased by 10-14 cents/lb since June amid rising production costs and good availability.

Pricing for HIPS has been even firmer because of product shortages related to the tight butadiene (BD) market.

A distributor said HIPS was priced 6-10 cents/lb above GPPS because of tight supplies and high polybutadiene rubber feedstock costs. In 2007 that premium was around 2 cents/lb, the source said.

US bulk GPPS was at 107.5-112.5 cents/lb before discounts, according to data from global chemical market intelligence service ICIS pricing.

Major PS producers include Total, INEOS NOVA and Americas Styrenics.

($1 = €0.65)

For more on polystyrene visit ICIS chemical intelligence
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By: David Barry
+1 713 525 2653

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