01 November 2012 21:42 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s polystyrene (PS) producer Innova is planning to increase prices for all grades of PS by $100-150/tonne (€77-116//tonne) in November, to offset rising feedstock costs, a company source said on Thursday.
Innova did not increase prices during October, and feedstock costs have escalated in the past 30 days, particularly for benzene, which had a record settlement in benchmark US markets this month.
The November benzene contract settled at an all-time high of $4.90/gal ($1,467/tonne, €1,130/tonne) earlier this week.
The settlement was up by 50 cents/gal from previous month, according to trade participants who cited recent record highs in the spot market and tight inventories.
It was not clear if other PS producers in Brazil would seek similar increases for November, but there was a strong possibility that they may follow suit, seeking to shore up falling margins.
Brazilian PS prices finished October in the range of $2,369-2,467/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices were at $2,418-2,517/tonne, based on ICIS data.
Prices in Brazil include the PIS/Cofins taxes, which add on average about 10% to the price.
The other main PS producers in Brazil are Unigel and Videolar.
($1 = €0.77)
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