01 August 2013 22:43 [Source: ICIS news]
HOUSTON (ICIS)--Estizulia, Venezuela’s sole polystyrene (PS) producer, increased prices for all grades of of the resin by 6%, effective on Thursday, a company source said.
The increase has been implemented to offset growing costs of production and services in the country, rather than higher priced raw material, the source said.
Annual inflation is estimated at nearly 40% and is affecting all market sectors.
PS demand remains steady in the country, even with the higher prices.
Production remains normal for all grades of PS, but there were some delays in the provision of raw materials by state-owned Pequiven that forced Estizulia to work at lower rates for while, but without stopping the plant.
Prior to the increase, general purpose polystyrene (GPPS) was at about bolivares fuertes (Bs) 24,000/tonne ($3,816/tonne, €2,862/tonne) FOT (free on truck). High-impact (HIPS) prices were at Bs26,250/tonne FOT, according to ICIS data.
Local buyers are expected to absorb the increase without much protest because they have no alternatives.
Venezuelan regulators have not authorised imports of PS in recent months, according to market sources.
($1 = €0.75, $1 = Bs6.29)
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