26 April 2013 17:20 [Source: ICIS news]
HOUSTON (ICIS)--April contract prices in the US polystyrene (PS) market were lower by 3 cents/lb ($66/tonne, €51/tonne), based on a 7% drop in feedstock benzene prices, sources said on Friday.
Initially, some producers attempted to hold the price reduction to 2 cents/lb. However, by the end of the month, there were too many competitive offers for a reduction of 3 cents/lb, resulting in most customers seeing the full 3 cent/lb reduction, according to a producer.
The price drop is based on a 33 cent/gal drop in April benzene contract prices, which fell to $4.36/gal for the month.
Market sources are predicting a flat settlement for May, based on a slight increase in spot benzene prices. However, flooding concerns along rivers in the midwest could cause supply to be tightened, which could pressure prices higher, sources said.
US prices were assessed by ICIS at 97-99 cents/lb for bulk general purpose PS (GPPS) DEL (delivered) and 107-109 cents/lb for bulk high-impact PS (HIPS) DEL.
Major US PS producers include Americas Styrenics, Styrolution and Total Petrochemicals.
($1 = €0.77)
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