24 January 2014 22:52 [Source: ICIS news]
HOUSTON (ICIS)--SABIC Innovative Plastics has announced a 7 cent/lb ($154/tonne) price increase for its polycarbonate (PC) resins in the Americas, effective 24 February, according to a customer letter dated Friday.
"Significant and continuing inflation for several of our key raw materials make it necessary for SABIC’s Innovative Plastics business to increase prices by the amounts listed below," the company said in the letter.
US January contracts for upstream benzene had settled at an average increase of 35.5 cents/gal on the back of tight supply. Spot prices softened this week but had established record highs last week on the back of short cover positions, tight prompt availability, recent production issues and delayed shipments.
"While we continually strive to offset increased costs through productivity measures, the current cost pressures require us to pass on a portion of our cost increase through this pricing action," SABIC said in the letter.
However, buyers said it would be hard for SABIC to implement an increase because the US PC market remains flat amid no supply issues and typically slow demand for the first quarter.
Additionally, SABIC is the lone producer in the US to announce that it is seeking an increase, and suppliers in Asia and Europe are not seeking price hikes at the moment.
Currently, ICIS has assessed the spot price of bulk general purpose moulding grade PC at $1.60-1.92/lb.
SABIC is seeking a 7 cent/lb increase for its SABIC PC and LEXAN PC resins.
The company is also seeking a 5 cent/lb increase for its Cycoloy PC/ABS (acrylonitrile-butadiene-styrene) blends, as well as a 4 cent/lb increase for its Noryl PPE/PS (polyphenylene ether resin and polystyrene) blends.
Other major PC producers in the US include Bayer MaterialScience and Styron.
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