Venezuela’s Estizulia reduces January PS prices by 15%

12 January 2009 17:43  [Source: ICIS news]

HOUSTON (ICIS news)--Venezuelan polystyrene (PS) producer in Estirenos de Zulia (Estizulia) has reduced prices for all grades of PS by 15% effective immediately, a company source said on Monday.

The reduction was needed because PS prices in Venezuela were nearly twice as high as in other Latin American countries, and demand had slowed down to a trickle, the source said.

Prior to this reduction, general purpose polystyrene (GPPS) in Venezuela was selling in the range of $2,800-2,850/tonne (€2,072-2,109/tonne), according to global chemical market intelligence service ICIS pricing.

Inflation concerns and high raw material values elevated prices of all plastic resins in Venezuela in the last quarter of 2008, and prices were slow to come down.

Buyers expected price reductions for all plastic resins, but local producers have not made any announcements so far.

Estizulia resumed PS production in Venezuela this month after a planned stoppage in December that extended over the year-end holidays.

Availability of butadiene rubber (BR) was vastly improved in Venezuela, which had normalised production of high impact polystyrene (HIPS).

Even with the January discount, Venezuelan prices remain high in comparison with those of other Latin American countries. For this reason, further adjustments in February could not be ruled out, the source said.

($1 = €0.74)

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By: George Martin
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