Argentina’s PS prices to rise by 10% in January

16 January 2013 22:58  [Source: ICIS news]

HOUSTON (ICIS)--Petrobras Energia, Argentina’s main polystyrene (PS) producer, is increasing prices by 10% for all grades of PS effective on 18 January, a company source said on Wednesday.

The increase was motivated by higher feedstock costs and currency devaluation.

Feedstock prices have been rising to all-time record levels, but government officials have not authorised a price increase in Argentina since August.

The current increase is stronger than those seen in the region for January – about 3 cents/lb ($66/tonne, €50/tonne) – but it is intended to compensate for the months when feedstock prices rose and PS price increases were not allowed.

Currently, general-purpose polystyrene (GPPS) prices in Argentina are in the range of $2,105-2,267/tonne DEL (delivered), while high impact polystyrene (HIPS) prices are in the range of $2,137-2,183/tonne DEL, according to ICIS data.

Another factor in the price erosion of commodities is the decline of the local currency relative to the US dollar.

At the start of this year, the US dollar was at Argentina peso (Ps) 4.31. In January 2013, one dollar is at Ps4.95 – nearly a 15% swing – based on the official exchange listing.

The so-called “blue” dollar (informal market) is currently at Ps7.50, as reported by local media.

($1 = €0.75)

By: George Martin
+1 713 525 2653

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