HOUSTON (ICIS)--Brazil’s polystyrene (PS) prices are declining this month, mostly because of a revalorisation of the local currency versus the US dollar, producer sources said on Wednesday.
One producer has confirmed a Brazilian real (R) 150/tonne (about $40/tonne) price reduction this month. Demand has gradually improved despite the growing negative impact of disposable goods replacement.
Producer Innova has low styrene monomer (SM) availability in February, which has given some price sustainability to both SM and PS markets.
The styrene maintenance is scheduled between February and March, for approximately 25 days. Innova has built stocks to supply existing customers during the maintenance, but will have limited stocks for new sales.
Until the maintenance ends, the company will focus on the domestic market.
Production rates are normal for producer Unigel. However, due to the SM shortage, the company is not resuming exports. Availability of PS for exports is very low in Brazil.
Prices for general purpose polystyrene (GPPS) are in the range of $1,550-1,670/tonne, with high impact polystyrene (HIPS) about $100/tonne higher.
The main PS producers in Brazil are Videolar Innova and Unigel.Brazil's GPPS prices are declining slightly in February, but are at practically average values for the year.