US PS prices down 8-9 cents/lb in January - buyers

09 January 2009 00:18  [Source: ICIS news]

HOUSTON (ICIS news)--US polystyrene (PS) producers lowered prices by 8-9 cents/lb ($176-198/tonne or €130-147/tonne) at the beginning of January, reflecting lower production costs, buyers and sellers said on Thursday.

General purpose PS (GPPS) grades were off 8 cents/lb, and high impact PS (HIPS) grades were down 9 cents/lb.

The larger decrease for HIPS reflects the falling cost of feedstock butadiene rubber, a HIPS supplier said.

GPPS bulk pricing in the second half of December was 61-65 cents/lb DEL (delivered) before discounts, according to data from global chemical market intelligence service ICIS pricing.

The market was well balanced after producers reduced rates and thinned out inventories in the fourth quarter of 2008.

One seller said its January inventories were at an all-time low and that plants would continue at reduced rates until demand picked up.

A buyer said PS prices could drop further in February if crude oil and aromatics prices remain flat and demand does not pick up sharply.

However, the seller said aromatics inventories would likely tighten in late February and March, causing PS feedstock costs to increase.

Major US suppliers of PS include American Styrenics, Total and INEOS NOVA.

($1 = €0.74)

For more on polystyrene visit ICIS chemicals intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: David Barry
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index