HOUSTON (ICIS)--Brazil’s polystyrene (PS) producer Innova is seeking a reais (R) 300/tonne ($127/tonne) price increase for all grades of the resin, effective on 1 February, a company source said on Wednesday.
The increase initiative is the first one this year, after two months of steady prices.
Brazilian PS prices are currently in the range of $2,246-2,373/tonne FOT (free on truck) for crystal grade, while high-impact PS (HIPS) prices are at $2,331-2,458/tonne FOT, based on ICIS data.
Prices in Brazil include the PIS/Cofins taxes, which add on average 9.25% to the price.
The Innova plant has been stopped for much of December and has only recently resumed operations.
A tight market has prevented a price decline at the end of 2013, considering also that producer Unigel is operating only one of its two plants.
PS producer Videolar is still awaiting a resolution from CADE, the government agency that controls acquisitions, regarding the purchase of Innova from Petrobras.
Market observers expect the transaction will be promptly approved by authorities.