September US PS up 2 cents/lb on feedstocks

24 September 2010 23:56  [Source: ICIS news]

HOUSTON (ICIS)--US polystyrene (PS) prices rose by 2 cents/lb ($44/tonne, €33/tonne) in September on higher feedstock costs and balanced fundamentals, sources said on Friday.

However, some processors would not see the hike until October due to contract terms.

PS suppliers had originally nominated 4 cent/lb hikes, but a producer announced a 2 cent/lb temporary voluntary allowance (TVA) accompanying the initiative, sources said.

PS buyers were uncertain over the eventual implementation of the pending 2 cent/lb TVA, and suggested the 2 cent/lb balance would be postponed to October or later.

One supplier had said it intended to leave options open for any decision on the remaining 2 cents/lb, as costs were biting into margins.

The sources indicated they were concerned that higher PS prices in the still-weak US economy would drive demand to smaller resin purchases, to downstream substitution with polypropylene (PP) products, or to China offers of cheaper finished goods.

The price of domestic general-purpose bulk PS was assessed by ICIS at 82-85 cents/lb, after the increase.

US PS producers are Americas Styrenics, INEOS NOVA and Total Petrochemicals.

($1 = €0.75)

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

By: Ron Coifman
+1 713 525 2653

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