Brazil Innova seeks $127/tonne February PS hike

22 January 2014 20:32 Source:ICIS News

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.

The measure is being prompted by an unexpected surge in feedstock benzene prices, likely to be reflected in downstream styrene monomer (SM) prices in the short term.

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.

($1 =R2.36)

By George Martin