03 January 2013 20:36 [Source: ICIS news]
HOUSTON (ICIS)--Bayer MaterialScience has announced its intent to increase its polycarbonate (PC) prices by 15 cents/lb ($331/tonne, €251/tonne) for shipments made on or after 1 February in the US, according to a price increase letter provided to ICIS by a market source on Thursday.
General purpose (GP) moulding grade PC in bulk has a spot price of $1.53-1.85/lb.
The company is also seeking a price increase for its PC blend of 9 cents/lb.
The company said it could no longer offset or fully absorb the impact of rising costs for key raw materials.
One buyer said the Bayer price increase proposal was “absolutely crazy”.
SABIC is seeking 11 cents/lb, and Styron is seeking 12 cents/lb. SABIC’s increase is proposed for shipments on or after 7 January, while Styron’s increase is for material exchanging hands on or after 4 January.
The amount of traction garnered from those two increases will be determined later in the month.
The cost of benzene has been the primary reason the producers have announced their price increase initiatives.
Benzene is a major building block of PC. The contract price of benzene in 2012 moved from $3.70/gal in January to $4.93/gal in December and the January 2013 contract price has moved to $5.16/gal.
The contract prices increase for benzene from January through December 2012 was 33%. The January year on year increase is 39%.
PC in January 2013 had a spot price of $1.50-1.65 for GP moulding grade in bulk.
Comparing the average prices, the cost of PC has increased by 7.4% since January 2012.
($1 = €0.76)
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