30 October 2012 21:49 [Source: ICIS news]
HOUSTON (ICIS)--Resirene, Mexico’s largest polystyrene (PS) producer, is seeking to increase prices for all grades of PS by 7 cents/lb ($154/tonne, €120/tonne) from 1 November, a company source said on Tuesday.
Resirene sent a letter to its customers in Mexico and abroad, announcing the increase.
The company justified the measure by citing continuous volatility in petrochemical feedstocks, particularly benzene, which has reached all-time highs in recent weeks, affecting downstream material.
Other PS producers have already made similar announcements, justified by the need to shore up sagging production margins.
Buyers continue to point that styrene prices have not increased in the same proportion as benzene prices.
Additionally, PS demand is seasonally not strong in Mexico, making the increases harder to pass along to final consumers.
Current PS prices in Mexico are at $1,850-1,897/tonne FOT (free on truck) for general purpose PS (GPPS), while high impact PS (HIPS) prices are at $2,004-2,046/tonne FOT, according to ICIS.
($1 = €0.78)
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