28 November 2012 18:38 [Source: ICIS news]
HOUSTON (ICIS)--SABIC Innovative Plastics has announced a price increase proposal of 11 cents/lb ($243/tonne, €186/tonne) in the US for its Lexan polycarbonate (PC) and 7 cents/lb for its PC blends, sources confirmed on Wednesday.
Similar increases are being sought by SABIC IP on a global basis.
The increases are to cover rising feedstock costs, mainly the increased costs for benzene and will be effective for shipments made on or after 7 January 2013.
Benzene contract prices have increased more than 55% since November 2011, with the November 2012 contract price at $4.90/gal, an all-time high.
A letter dated 26 November has been sent to SABIC IP’s PC customers.
Buyers were not surprised that SABIC IP would seek an increase, as feedstock benzene costs have increased.
However, some sources were uncertain as to why the producer would seek an increase at this time with the unstable business climate in the US.
One market participant said that maybe SABIC IP will be more determined in getting more of this proposal to grab traction.
SABIC IP had last sought an increase, for 11 cents/lb, for its PC material in September, and was able to achieve minimal success.
During that time, Styron was seeking an increase of 14 cents/lb and Bayer MaterialScience was seeking an increase of 15 cents/lb.
Market sources said Bayer and Styron were unable to attract traction to their price increase initiatives.
North American PC producers include Bayer MaterialScience, SABIC Innovative Plastics and Styron.
($1 = €0.77)
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