01 June 2012 18:09 [Source: ICIS news]
HOUSTON (ICIS)--Estizulia, Venezuela’s sole polystyrene (PS) producer, increased prices for all grades of PS by 5% effective 1 June, a company source said on Friday.
The price increase is not related to the cost of raw materials in international markets, the source said.
Instead, the measure responds to a readjustment of company costs caused by a new labour law that was introduced in May.
The changes brought by the new legislation affect primarily personnel costs. Venezuelan companies are trying to protect themselves by adjusting their product prices to cover the extra costs.
US BD contracts have already declined by 27% in June, confirming settlements that have erased nearly all of the gains in US prices since the start of the year.
Estizulia has not received raw materials at lower prices yet. When that occurs, a proportional price reduction for PS may be negotiated, the source said.
Prior to the June increase, crystal grade PS prices in Venezuela were in the range of $3,488-3,604/tonne (€2,825-2,919/tonne), while high impact PS (HIPS) prices were at $3,785-3,907/tonne, according to ICIS data.
($1 = €0.81)
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