16 December 2011 21:04 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s polystyrene (PS) producers are seeking price increases for all grades of PS effective 1 January, to offset growing feedstock costs, market sources said on Friday.
Mexico’s Resirene notified its customers that PS prices will increase by 6 cents/lb ($132/tonne, €102/tonne) effective 1 January, because of increased volatility in petrochemical feedstock prices, particularly benzene and styrene monomer, a company source said.
The increase will affect general purpose PS (GPPS) as well as high impact PS (HIPS), and it is valid for domestic and exports sales alike.
Styrolution Mexicana, another producer in Mexico, has already notified customers about an 11 cent/lb increase for January, a buyer said.
The increase was considered steep, but interpreted as a manoeuvre to achieve a smaller increase with less resistance.
Buyers lamented the increase initiatives because they fear higher prices may slow down the current momentum of PS products, which are enjoying strong demand.
Resirene agreed that PS demand has been brisk in December, as many buyers sought to replenish stocks ahead of January price increases. December stocks are sold out or very close to it, the producer said.
December PS prices in Mexico are in the range of $1,740–1,781/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices were at $1,942–2,030/tonne FOT, based on ICIS data.
The main PS producers in Mexico are Resirene, Styrolution Mexicana (Ex-BASF) and Idesa.
($1 = €0.77)
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