SABIC seeking 14 cents/lb price increase on US polycarbonate

09 February 2011 22:49  [Source: ICIS news]

HOUSTON (ICIS)--SABIC Innovative Plastics announced a price increase on US polycarbonate (PC), with tight supply expected to push through the initiative, buyers said on Wednesday.

A source close to SABIC said the company was seeking a price increase of 14 cents/lb ($309/tonne, €225/tonne) effective 28 February, or as contracts allow.

The initiative came on the heels of Bayer MaterialScience declaring force majuere (FM) on North American polycarbonates because of production issues at the company’s 260,000 tonne/year PC plant in Baytown, Texas.

Two buyers said that with supply limited by Bayer’s FM, SABIC is likely to successfully push through most of its PC increase initiative.

“[Bayer’s FM] should play right into SABIC’s hand,” a buyer said.

Sources also said that improved demand for PC should lend strength to increasing prices.

A source close to SABIC said the price increase nomination was mostly fuelled by surging benzene costs. The US February benzene contract price increased 51 cents/gal from January, a jump of 13%.

US spot PC prices were assessed by ICIS at 156-175 cents/lb FOB (free on board) for moulding- and extrusion-grade material.

($1 = €0.73)

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By: John Dietrich

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