07 January 2013 21:54 [Source: ICIS news]
HOUSTON (ICIS)--A Mexico expandable polystyrene (EPS) producer announced on Monday a price increase of 3 cents/lb ($66/tonne, €50/tonne) for February, based on higher feedstock prices.
Polioles announced the increase effective on 1 February, according to a copy of a customer letter obtained by ICIS. It was not clear if other producers had made a similar announcement.
The proposed increase is based on record high benzene prices, which hit $5.16/gal for January, sources said. The increase is in addition to a 3 cent/lb increase producers announced for 1 January.
"This measure is necessary due to additional price increases of benzene, which is the main precursor of our raw material, styrene monomer," the letter said.
Some sources have indicated that the January increase is gaining traction. However, it was not clear that the February increase would receive the same level of support, sources said.
Before the January or February increase, Mexico EPS prices were assessed by ICIS at 117-121 cents/lb DEL (delivered) for block material and 113-117 cents/lb DEL for package material.
Major North American EPS producers are BASF, NOVA Chemicals, Flint Hills Resources, Styrochem, Nexkemia, Polioles and Polidesa.
($1 = €0.76)
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