19 November 2010 18:04 [Source: ICIS news]
HOUSTON (ICIS)--A 19-cent/lb hike for polycarbonate (PC) might partially succeed, although it will face resistance, buyers and distributors said on Friday.
Bayer MaterialScience announced the 19 cent/lb ($419/tonne, €306/tonne) increase for PC on 8 November in a letter to buyers, and Styron followed with an equal increase on 15 November, according to a letter to its buyers.
The price increases would be effective on 1 December or as contracts allow across all grades of PC.
Market sources said the amount of the price increase was surprising and that it will certainly face resistance, as demand has remained mostly flat.
A buyer said it was also surprising a price increase would come so late in the year, when activity in the market is typically slower.
The price increase was largely fuelled by rising feedstock costs, most notably the 34-cent/gal increase in the November benzene contract.
The third major player in the US PC market, SABIC Innovative Plastics, has not announced a price increase. Market sources indicated SABIC was taking a wait-and-see approach to the announced price increases.
US PC is currently assessed by ICIS at $1.50–1.60/lb for moulding and extrusion material.
($1 = 0.73)
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