24 August 2012 22:12 [Source: ICIS news]
HOUSTON (ICIS)--A 10 cent/lb (€80/tonne) polystyrene (PS) price increase under implementation in August is facing resistance from transformers and taking hold partially, market sources said on Friday.
Prices have increased by no more than 7 cents/lb in August, sources said.
High crude oil and feedstock prices have pressured producers to seek a large price increase to protect margins.
Transformers are not responding because demand from end users in Mexico has been subdued, with few ongoing large projects.
Contract awards usually go to the lowest bidder, which requires sacrifices from resin suppliers and transformers alike, a transformer said.
A trader acknowledged that penetration of the August increase has been partial so far, and that the remainder of the hike may be postponed until September.
Current prices in Mexico are at $1,874-1,919/tonne FOT (free on truck) for general purpose PS (GPPS), while high impact PS (HIPS) prices are at $2,100-2,190/tonne FOT, according to ICIS.
($1 = €0.80)
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