26 March 2013 19:44 [Source: ICIS news]
HOUSTON (ICIS)--Mexico expandable polystyrene (EPS) prices fell in March, based on lower feedstock costs and weak demand, market sources said on Tuesday.
Mexico prices fell on average by 3-4 cents/lb ($66-88/tonne, €51-69/tonne) for all grades of EPS, based in part on lower benzene costs, and in part on lower-than-normal demand, sources said.
One producer said prices only fell by around 3 cents/lb for the month, but some buyers saw more of a decrease, sources said.
Mexico prices are following a similar trend to those in the US, which have fallen by between 3-4 cents/lb so far in March, also on lower benzene costs, which dropped by 11 cents/gal to $4.69/gal for March contracts.
"The first quarter has been the same in the US and in Mexico, with demand very low," said one buyer from Mexico. "Most of the suppliers are reducing prices very fast."
Buyers are anticipating another drop of at least 3 cents/lb in April, based on continuing softness in feedstock benzene and styrene prices.
Demand is expected to improve in April, as the construction season gets underway, buyers and producers said.
With the price decrease, Mexico EPS prices were assessed by ICIS at 116-119 cents/lb for block material and 112-115 cents/lb for package material.
Major Mexico EPS producers are Polioles and Polidesa.
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