05 October 2011 21:08 [Source: ICIS news]
MEXICO CITY (ICIS)--October polystyrene (PS) prices in Mexico will likely drop this month following lower values for crude oil and feedstocks, several sources said on the sidelines of the 17th Plastimagen exhibition and conference, which continued on Wednesday in Mexico City.
Seller sources acknowledged weakening demand caused by falling benzene and styrene monomer (SM) costs, and they expected a gradual decline of no more than 2 cents/lb ($44/tonne, €33/tonne) during the month.
Buyers expected price cuts in line with the decline in feedstock costs, and they continued to use a cautious approach for purchases while waiting for prices to reach a bottom.
Benzene spot prices were discussed at $3.00-3.10/gal FOB (free on board) early on Wednesday, lower from the previous session by 5 cents/gal at the high end of the range.
Sentiment remained pessimistic, despite some gains in the crude market.
Styrene prices have also declined, but not as fast as those for benzene.
SM prices were last heard in the range of 57-58 cents/lb, but would likely weaken further in the short term.
Mexico’s PS prices were in the range of $1,944-1,988/tonne FOT (free on truck) for general purpose PS (GPPS) while prices for high impact PS (HIPS) were at $2,120-2,186/tonne FOT, as assessed by ICIS.
Prices have not changed this week, but negotiations of deals for this month will likely emerge on the week of 10 October, a producer said.
Mexican PS producers include Grupo Idesa and Resirene, a subsidiary of the Mexico-based conglomerate Grupo Kuo.
($1 = €0.75)
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