AFPM ’19: US PS, EPS increases likely on feedstocks

Adam Yanelli

23-Mar-2019

HOUSTON (ICIS)–March prices for US polystyrene (PS) and expandable polystyrene (EPS) are poised to rise on higher upstream costs and increasing demand.

Market participants are tracking rising costs for upstream styrene, which settled higher because of increased benzene contracts, heading into this year’s International Petrochemical Conference (IPC).

ICIS February contract prices are 98-108 cents/lb DEL (delivered) for general purpose PS (GPPS) and high impact PS (HIPS) grades.

ICIS Editorial Chart goes here

US PS prices decreased by 2 cents/lb in January and by 7 cents/lb in December.

Suppliers have separately announced their intent to increase PS prices for March, and market sentiment is that some increase is likely, given that upstream benzene and styrene prices have been on the rise and styrene supply has tightened.

A distributor said this week that it is unsure of where March prices will settle.

“I think, at worst, some of the low-end deals will go away and [there will be] no more price erosion,” the distributor said.

Styrene affects the PS market when supply gets tight. That is the case now, but the situation is not as extreme as in either 2017 or 2018, following the completion of a planned 45-day turnaround that began at the end of January at one of two styrene lines at its St James facility in Louisiana.

A second styrene plant turnaround is expected to begin in March, when LyondellBasell, the second largest styrene producer in North America, begins a turnaround at its 1.27m tonne/year styrene plant in Channelview, Texas.

EPS prices are also being pressured higher by feedstocks.

EPS prices are 87-91 cents/lb for block and packaging grades DEL (delivered) US.

Softer demand due to an extended winter could cap increases.

March is generally when demand for EPS starts to pick up. Peak demand for disposable items made from EPS takes place in the second quarter.

US EPS prices last moved in February, when they fell on lower January benzene contract prices.

In Mexico, EPS prices rolled over for March, even as February demand was slightly better than expected.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.

Focus article by Adam Yanelli

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