Argentina polystyrene prices rise 7% in May on feedstock

04 May 2011 20:04  [Source: ICIS news]

HOUSTON (ICIS)--Petrobras Energia, the main polystyrene (PS) producer in Argentina, increased prices by an average of 7% in May to offset higher feedstock costs, buyer sources said on Wednesday.

The increase came despite government efforts to control inflation. However, higher crude oil prices have affected the aromatics chain by increasing upstream costs.

Therefore, government officials may be more flexible about price increases in view of ample evidence of higher raw material costs.

Prior to the May increase, general purpose PS (GPPS) prices were $2,042-2,162/tonne (€1,368-1,449/tonne) DEL (delivered), while high impact PS (HIPS) grade was $2,162-2,305/tonne DEL, based on ICIS.

PS production was said to be normal in Argentina after the labour strike that paralysed the company’s 66,000 tonne/year Zarate plant for nearly 30 days in March.

Similar labour disputes could potentially affect the 160,000/tonne/year styrene monomer (SM) production plant, but those concerns appeared to be easing, a buyer said.

Producer sources were not immediately available for comment.

 ($1 = €0.67)

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By: George Martin
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