10 February 2012 21:27 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian polystyrene (PS) producers are seeking a large price increase for February, described to be in the range of Brazilian reais (R) 400/tonne ($233/tonne, €175/tonne), buyer sources said on Friday.
Prices of essential feedstocks benzene, styrene and butadiene (BD) have skyrocketed of late, and producers are trying to restore margins.
So far, an average increase of about R250-300 was taking hold in the Brazilian domestic market, but many buyers have not yet replenished stocks in February.
The Brazilian summer months have revived demand for disposables, but buyers did some pre-buying ahead of the announced price increases for February.
Demand was said to be good also for the refrigeration segment because of incentives for the purchase of appliances.
Production was described as normal, with all plants running.
It appears that styrene supply has improved, with most plants returning to normal production patterns.
However, the effects of previous styrene shortages are still lingering in Brazil, a PS producer said.
Prior to the February increase, PS prices in Brazil were in the range of $2,144-2,260/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices were at $2,203-2,319/tonne, based on ICIS data.
($1 = R1.72)
($1 = €0.75)
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