28 March 2011 22:55 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--Rising costs for butadiene (BD) have become the main concern for Resirene, a polystyrene (PS) producer in Mexico, a company sales manager said on Monday.
Miguel Angel Aguirre, the manager, was speaking on the sidelines of the 17-21 cents/lb were heard last week, attributed to higher crude oil prices. Butadiene spot prices were already up by 21 cents/lb, as assessed by ICIS.
HIPS prices in Mexico were hovering around $2,100/tonne (€1,491/tonne) DEL (delivered). If the April BD increases materialise, the price of HIPS will continue to soar over the price of general purpose PS (GPPS), currently averaging about $1,930/tonne DEL in Mexico.
During March, the price of HIPS increased in Mexico by only 1 cent/lb out of 3 cents/lb sought by producers. The difference will be applied as temporary voluntary allowance (TVA) in April.
A TVA typically implements part of an announced increase if market conditions change.
However, a larger increase for HIPS could be in store for April if the proposed BD increases materialise.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
($1 = €0.71)For more on polystyrene visit ICIS chemical intelligence
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