05 May 2012 00:03 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian polystyrene (PS) producers described conflicting ideas regarding price increase initiatives for May, market sources said on Friday.
One producer is seeking implementation of a reais (R)200/tonne ($104/tonne, €79/tonne) increase, perceiving that the market is a bit short.
Another reason for the intended increase is the recent weakening of the real versus the US dollar.
A second producer is pursuing a rollover, seeing a decline of demand in all segments – something considered normal for the season.
Demand was a little bit soft in April, but the short term looks good, a producer said.
The softer demand in April was attributed to destocking. Transformers reduced their inventories in April and they will return to the market in May. Perhaps they were expecting lower prices, a producer speculated.
PS production was described as normal, but it appears that at least one producer had problems in April.
Brazilian PS prices finished April in the range of $2,334-2,440/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices were at $2,387-2,493/tonne, based on ICIS data.
Prices in Brazil include the PIS/Cofins taxes, which add approximately 9.5% to the price.
The main PS producers in Brazil are Unigel, Innova and Videolar.
($1 = €0.76 )
($1 = R1.92)
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