Mexico’s PS producers seek a 3 cents/lb Sep increase

05 September 2013 23:13  [Source: ICIS news]

MEXICO CITY (ICIS)--Mexico’s domestic polystyrene (PS) producer Resirene will seek to increase prices for all grades by 3 cents/lb ($66/tonne, €50/tonne) in September, a company source said on Thursday.

Other producers have shown similar initiatives, but one has said that the increase for high impact polystyrene (HIPS) will only be 1 cent/lb.

This may end up being as much as producers will be able to get on HIPS, as they strive to preserve market share.

Weak demand for butadiene rubber (BR), a key raw material for HIPS, is causing the hike for this grade to be smaller.

The September PS increase has its origin in recent price increases for feedstock benzene and styrene monomer caused by the surge in crude oil prices associated with turmoil in the Middle East.

PS demand has been soft in August, despite some pre-buying ahead of September increases.

Before the September hike, PS prices in Mexico are at $1,941-1,985/tonne FOT (free on truck) for general purpose polystyrene (GPPS), while HIPS prices are in the range of $2,138-2,205/tonne FOT, according to ICIS data.

($1 = €0.76)

By: George Martin
+1 713 525 2653

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