23 February 2011 17:54 [Source: ICIS news]
HOUSTON (ICIS)--Two US polystyrene (PS) producers nominated price increases of 3 cents/lb ($66/tonne, €48/tonne) for March because of rising feedstock benzene costs, sources said on Wednesday.
A third supplier had not yet announced a price initiative for March, but buyers said they expected the supplier to go along with the trend.
Rising crude oil prices, coupled with snug benzene supply in the US Gulf, could send North American benzene to a record high settlement in March, a PS producer said.
“Benzene is tracking to Brent rather than WTI [West Texas Intermediate crude],” the source said. “The other side is supply: Asian [benzene] imports are being diverted to Europe because they have better pricing than North America.”
The producer said February price increase initiatives of 4 cents/lb were implemented fully to cover costs.
Buyers said most, if not all, of the February increase nominations would hold.
As recently as two weeks ago, market participants were expecting PS prices to fall in March, but sources now predict a downward correction in April, at the earliest.
PS supply and demand were balanced in North America, buyers said.
“There is plenty of availability. People want to sell resin. It’s just a matter of getting the price they need to cover costs,” a buyer said.
Major US PS producers include INEOS NOVA, Total Petrochemicals and Americas Styrenics.
($1 = €0.73)
For more on polystyrene, visit ICIS chemical intelligence
To discuss issues facing the chemical industry, go to ICIS connect
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections