12 January 2011 19:10 [Source: ICIS news]
HOUSTON (ICIS)--US polycarbonate (PC) price hikes of 6-10 cents/lb ($132-220/tonne, €102-169/tonne) have been accepted, several distributors and producers said on Wednesday .
Sources said about 6-10 cents/lb ($132-220/tonne, €102-169/tonne) out of nominations for 16-19 cents/lb, have passed through.
The nominations were announced by Bayer, SABIC and Styron, and went into effect on 1 December and 20 December. The announcements came in November.
Market sources said the nominations were largely fuelled by the surge in the November benzene contract, which jumped 34-35 cents/gal that month.
Since then, the January contract has settled an additional 42 cents/gal higher from the November level, lending strength to continued negotiations and possible future price increase nominations.
However, several distributors and larger buyers said PC demand at the end of 2010 and the start of 2011 created room for resistance.
Although PC demand was said to be strengthening slightly to start the year, it was not enough to push through the full increase. Sources said negotiations were likely to continue in the spot market.
Before the price increase initiatives took hold, prices for US PC were assessed by ICIS at 150-165 cents/lb for moulding- and extrusion-grade material, although deals were heard above and below the range based on factors such as order size.
In December, several smaller buyers said they had not been able to mount resistance to the price increases, and most had accepted the full increase.
($1 = €0.77)
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