13 March 2013 20:12 [Source: ICIS news]
HOUSTON (ICIS)--Argentina’s buyers confirmed on Wednesday that March prices for all grades of polystyrene (PS) are being increased by 6% this month.
The increase is nominated on local currency, and for this reason, it is expected to become less onerous by the end of the month.
The Argentine peso has been losing ground steadily against the US dollar as the country battles inflation.
In other resins, the price is set in dollars per metric tonne and converted to Argentine pesos per metric tonne at a preset rate, driven by the evolution of currency exchange.
Higher feedstock costs and the continuous currency devaluation remain the drivers of the increases implemented so far in 2013.
PS prices were increased by 10% in mid-January, and that increase has been absorbed in full by the domestic market.
With the current increase, March general purpose polystyrene (GPPS) prices are in the range of $2,398-2,564/tonne DEL (delivered), while high impact polystyrene (HIPS) prices are at $2,533-2,721/tonne DEL, according to ICIS data.
Inventories are adequate for the current demand conditions. However, there is a turnaround expected to start this week that will keep the plant down for about 40 days.
During the maintenance, Petrobras Energia, the local producer, will cover orders from inventory. Imports from Brazil may also play a role in supply, although it was not clear if those resins were entering the country without paperwork hassles.
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