11 January 2013 22:14 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s polystyrene (PS) price increases nominated for January are finding market resistance amid soft demand, sellers and buyers said on Friday.
The initiatives seen for Mexico called for 3 cent/lb ($66/tonne, €50/tonne) price increase for all grades of PS, effective on 1 January.
US suppliers that frequently sell PS resins into Mexico have been seeking a similar amount in US markets and abroad.
A distributor said buyers were flocking to those sellers that still have unsold inventories at November price levels. December prices were a rollover of November levels.
One producer characterised January sales as being better than December’s, but the problem is that December levels were dismal, affected by the year-end holidays and buyers' desire to end the year with low stocks.
Any January increases not passed along to customers will be pursued again in February, a producer said.
Transformers in Mexico are competing hard for a handful of projects that force them to trim prices to nearly break-even point.
Current PS prices in Mexico are at $1,831-1,874/tonne FOT (free on truck) for general purpose PS (GPPS), while high impact PS (HIPS) prices are at $2,117-2,162/tonne FOT, according to ICIS data.
$1 = €0.75
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