16 November 2012 19:47 [Source: ICIS news]
HOUSTON (ICIS)--November prices in the US polystyrene (PS) market were higher by 5 cents/lb ($110/tonne, €86/tonne), based on higher feedstock costs, sources said on Friday.
The increase was necessary based on the November benzene contract, which settled up by 50 cents/gal at $4.90/gal, according to suppliers.
"I know customers aren't happy about it, but ultimately, with the benzene movement, it was necessary," said one supplier.
Two producers had announced the 5 cent/lb increase for all grades of PS, effective on 1 November, while a third producer initially announced a 7 cent/lb increase. Sources said the third producer agreed to meet the competitive offer of 5 cents/lb.
While buyers said they understood the need for the increase based on the higher benzene cost, some said they will do what they can to avoid making purchases during the month.
A supplier agreed the higher prices have led to somewhat weaker demand for the month. However, the supplier said if buyers are hoping prices will settle lower in December, they may be disappointed.
US PS prices were assessed by ICIS at 99-103 cents/lb for bulk GPPS DEL (delivered) and 109-113 cents/lb for bulk HIPS DEL.
Major US PS producers include Americas Styrenics, Styrolution and Total Petrochemicals.
($1 = €0.78)
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