Brazil’s PS prices will likely remain stable through May

11 May 2011 22:10  [Source: ICIS news]

SAO PAULO (ICIS)--Polystyrene (PS) prices in Brazil were steady and were likely to stay that way through May, local producers and distributors said at Brasilplast, which continued on Wednesday.

They were speaking on the sidelines of the trade fair and conference.

Demand for disposables was somewhat soft, but in line with the expected seasonal slowdown. Demand from the refrigeration and appliances segment was seen as steady.

Prices have increased in 2011 following the escalation of costs for feedstocks benzene and styrene monomer. Tight supplies early in the year lent further support to price increases.

May prices for general purpose PS (GPPS) were at $2,674-2,738/tonne (€1,845-1,889/tonne) FOT (free on truck) while high impact PS (HIPS) prices were at $2,769-2,833/tonne FOT based on ICIS data. Prices include the PIS/Cofins taxes.

Production was up with the two Unigel plants running, although sources noted that the plants are not running at full capacity.

With all production restored, some felt that oversupply could pressure domestic prices down, unless a good part of the production is exported.

Lost production in Argentina caused by a labour strike during March resulted in 4,000 tonnes of PS material exported to that country in April, but this outlet was not expected to be available in May or beyond, as Argentine production recovers.

The main producers in Brazil are Unigel, Innova and Videolar.

Brasilplast is a major fair for the plastics industry in South America, and is organised by Reed Exhibitions Alcántara Machado.

Brasilplast 2011 runs through Friday.

($1 = €0.69)

For more about PS visit ICIS chemical intelligence

By: George Martin
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