26 July 2012 18:23 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian polystyrene (PS) prices could jump in August as local producers seek to offset rising feedstock costs, producer sources said on Thursday.
At least two PS producers supported the idea of a R400/tonne ($196/tonne, €161/tonne) price increase for August, although this number could still be revised.
The initiative has its origin in cost pressures, but currency devaluation remains a factor, a producer said.
In July, only one producer was in favour of a R200/tonne price increase, but two others supported a rollover, which became the de-facto outcome for the month.
However, persistently high benzene prices have changed the outlook for August, prompting producers in the US and other countries to seek a 10 cent/lb increase for all grades in August.
Brazilian PS prices are currently in the range of $2,225-2,324/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices were at $2,275-2,374/tonne, based on ICIS data.
Prices in Brazil include the PIS/Cofins taxes, which add on average about 10% to the price.
The main PS producers in Brazil are Unigel, Innova and Videolar.
($1 = €0.82) ($1 = R2.04)
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