US December PS prices soften on feedstocks

22 December 2011 16:16  [Source: ICIS news]

HOUSTON (ICIS)--US December polystyrene (PS) prices fell on average by 1 cent/lb ($22/tonne, €17/tonne) from November for both general purpose polystyrene (GPPS) and high impact polystyrene (HIPS), based on lower feedstock costs, sources said on Thursday.

Market participants described settlements in the range of flat to down 2 cents/lb for December, with most buyers saying they saw prices fall by at least 1 cent/lb.

Producers said they were succesful in rolling over prices for more than half of customers, but agreed that prices had fallen for others as much as 2 cents/lb in some cases.

The decreases were based on a drop in December benzene contracts, which settled down by 15 cents/gal to $3/gal.

US butadiene (BD) had a split settlement with most of the market down 17 cents/lb to a weighted averge price of 98.3 cents/lb for December. Butadiene is used to make HIPS.

With the price decrease, US domestic PS prices are assessed by ICIS at 77-82 cents/lb DEL (delivered) for GPPS and at 84-89 cents/lb for HIPS.

The price drop is the last decrease market participants expect to see for a while, based on rising benzene prices. Spot benzene traded as high as $3.74/gal on Tuesday.

PS producers are pushing for hikes of between 5-7 cents/lb for January contracts, depending on the grade, based on rising feedstock costs.

Buyers said they were not sure whether producers would be able to implement the full increase, but did agree prices would rise in January.

"I think there will be an increase, but how much is still to be determined," a buyer said.

Major North American PS producers include Americas Styrenics, Styrolution, Total Petrochemicals and Resirene.

($1 = €0.77)

For more on PS visit ICIS chemical intelligence

By: Michelle Klump
+1 713 525 2653

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