18 October 2012 21:09 [Source: ICIS news]
HOUSTON (ICIS)--Expandable polystyrene (EPS) producer NOVA Chemicals plans to implement a 4 cent/lb ($88/tonne, €67/tonne) increase for all grades, effective on 1 November in the US and Canada, according to a customer letter obtained by ICIS.
Canada's NOVA gave no reason for the increase.
However, some market participants have said they have been expecting an increase because of higher feedstock benzene costs. Spot benzene was heard bid as high as $5/gal on Thursday. NOVA's EPS operations are in Pennsylvania.
The proposal matches one announced earlier in the month by EPS producer BASF. That increase was to be effective on 11 October. However, after no other domestic producers announced an October increase, sources said it would likely be pushed to November.
The proposed increase would put domestic material more in line with Asian import prices, which have risen significantly in recent weeks because of higher Asian styrene prices.
Before any increase, US EPS prices were assessed by ICIS at 96-102 cents/lb for package material and 98-104 cents/lb for block material.
Major North American EPS producers are BASF, NOVA, Flint Hills Resources, Styrochem, Nexkemia, Polioles and Polidesa.
NOVA's EPS operations are in Pennsylvania.
($1 = €0.76)
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