02 October 2012 22:40 [Source: ICIS news]
HOUSTON (ICIS)--Soft polystyrene (PS) demand in Latin American countries has promoted conditions for price rollovers in October, regardless of what happens to feedstock prices, sellers said on Tuesday.
September PS prices have been steady in several countries, and in some where increases were sought, buyers have resisted.
In Mexico, demand has been soft throughout September, forcing producers to leave October prices untouched.
Good volumes sold in September suggest that Mexico’s PS demand for the remainder of the year will be soft, making any price increases more difficult despite potentially higher feedstock costs.
A rollover is in force in Argentina, where prices will also remain steady in October, according to producer sources.
Demand has softened in Argentina, forcing the local producer to slow production to ease excessive inventory build-up.
Price increases were pushed in Brazil during September, with much resistance from clients.
It was not clear if additional increases would be pushed in Brazil during October.
Prices appear steady in Colombia also, although demand there has been decent, according to distribution sources.
With rollovers seen so far in the US Gulf in October, prices in net importing countries such as Chile, Ecuador and Peru also may remain steady.
Venezuela’s PS prices have changed little this year, but remain at much higher levels than those that can be seen in other countries.
With only a few days left for the Venezuelan presidential elections, it is safe to assume there will be no price changes in October.
PS prices in Latin America (minus Venezuela) range from $1,917-2,366/tonne (€1,495-1,845/tonne) for general purpose PS (GPPS) and $2,148-2,415/tonne for high impact PS (HIPS).
By contrast, prices in Venezuela start at $3,662/tonne for GPPS and nearly at $4,000/tonne for HIPS.
($1 = €0.78)
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