Total issues letter for 3 cent/lb PS increase in October

24 September 2013 17:21  [Source: ICIS news]

HOUSTON (ICIS)--Total Petrochemicals, which owns the biggest polystyrene (PS) plant in the US, will seek an increase of 3 cent/lb ($66/tonne, €49/tonne) in all grades of PS, effective 1 October, hours after other producers had announced similar increases, a market source familiar with the offer said on Tuesday.

The announcement was made late on Monday after Styrolution, Americas Styrenics and Resirene announced similar increases for October for high impact polystyrene and general purpose polysterene, on grounds that inventories are low, sources said.

Inventories are low because of the announcement last week of an approximately 10-day unplanned shutdown of Americas Styrenics plant in Torrance, California. In addition, one of the other plants of Americas Styrenics in Marietta, Ohio, will shut down one of three lines for maintenance in October.

After Styrolution, Americas Styrenics and Resirene had announced on Monday the October increase, a market source said that if Total were also to announce a price hike, the chances of it being actually carried out would greatly improve. Total owns the biggest PS plant in the US, which is located in Carville, Louisiana, and has a 658,000 tonne/year capacity, according to ICIS.

The announcement for the October increase comes as the September PS contracts appears to be near settlement with a similar increase accepted by several buyers for that month, according to several market sources.

($1 = €0.74)

By: Renzo Pipoli
+1 713 525 2653

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