20 August 2013 21:01 [Source: ICIS news]
HOUSTON (ICIS)-Mexican expandable polystyrene (EPS) prices were assessed higher by 1.5 cents/lb ($33/tonne, €25/tonne) on Tuesday, based on higher feedstock costs and despite weak demand.
While some sources said prices rose by as much as 3 cents/lb, that increase was not seen as being market wide.
One producer said it implemented between 2-3 cents/lb for August, while another producer said it implemented a 3 cent/lb increase for half of the market.
One buyer agreed that it had seen a 3 cent/lb increase for August, while another buyer said it had only seen August increases of between 1-1.5 cents/lb.
The price increases were based on higher July US contract styrene prices, which rose by an average of 1 cent/lb from the previous month.
“The monomer is not coming down,” a Mexican EPS producer said.
Price increases were limited in part because of weak demand, as well as the fact that US prices did not increase in August. Mexican demand is weaker in part due to lower government construction spending, sources said.
Producers indicated they will likely seek an additional 2 cent/lb increase for September. One buyer said it saw the increase as inevitable but said he will try to “manage a negotiation in function of volumes”.
With the price increase, Mexico EPS prices were assessed by ICIS at 114.5-117.5 cents/lb for block material and 110.5-113.5 cents/lb for package material.
Major Mexico EPS producers are Polioles and Polidesa.
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