Styron seeking 12 cent/lb increase for PC in Americas

11 July 2014 22:11 Source:ICIS News

HOUSTON (ICIS)--Styron intends to raise the price of its natural polycarbonate (PC) resins in the Americas by 12 cents/lb ($265/tonne), effective 4 August or as contracts allow, according to a customer letter obtained by ICIS on Friday.

"The price increase is in response to escalating costs of key raw materials used in the production of polycarbonate," the producer said in the letter dated 10 July.

The price increase initiative will affect Styron's CALIBRE resins and will be in additional to all previously announced price hikes.

Styron is the third US producer to announce an increase, following the recent spike in the July contract price for upstream benzene.

Bayer MaterialScience intends to raise prices by 10 cents/lb starting on 14 July, while SABIC Innovative Plastics is seeking its own increase of 10 cents/lb starting on 4 August.

Some buyers said their prices will not go up, despite the announcements, while other players said they did not see how the market can absorb the increases, especially around the summer when it is seasonally slow.

Global supply remains long, and demand was still soft, they said.

Still, a compounder said it believes the producers will achieve most of their targeted price increases.

Currently, ICIS has assessed the spot price of bulk general purpose moulding grade PC at $1.65-1.97/lb.

Major US PC producers include Bayer MaterialScience, Styron and SABIC Innovative Plastics.

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By Tracy Dang