Chemical News
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US September EPS price hike sees partial acceptance
https://www.chemnet.com Sep 14,2011 ICIS
HOUSTON-US expandable polystyrene (EPS) prices rose this week as September price increases found partial acceptance, market sources said on Tuesday.
US EPS prices were assessed by ICIS at 91–98 cents/lb ($2,006-2,161/tonne, €,484-1,599/tonne) DEL (delivered) for block and package material, up 3 cents/lb from August prices.
Producers in the US had sought as much as 5 cents/lb, with BASF and NOVA seeking 5 cents/lb for modified or block EPS, which contains a flame retardant, and a 3 cent/lb increase for non-modified, or package EPS, effective 1 September.
Other producers, including Flint Hills Resources and Styrochem, announced a 5 cent/lb increase across the board, regardless of grade.
Initially, several producers had sought the increases on 15 August, but pushed the price hike back to 1 September to meet competitive situations.
The price hike was related to the August contract price for feedstock benzene, which was up by 44 cents/gal from July.
Some EPS producers were seeking the extra 2 cents/lb for modified EPS because of significant increases in the price of fire-retardant additives, sources said.
One producer said the fact that all producers did not support creating a premium for the flame retardant caused confusion in the marketplace, and resulted in only 3 cents/lb being accepted by buyers.
Buyers said the higher feedstock costs, and the fact that Asian imports are still more expensive than US material, made some increase inevitable.
However, recent drops in the price of benzene, as well as weaker demand, contributed to only partial acceptance of the increase, buyers said.
Major US EPS producers are BASF, NOVA Chemicals, Flint Hills Resources, Styrochem and Nexkemia.
($1 = €.74)
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