North American expandable polystyrene (EPS) producers have announced price increases of between 4–6 cents/lb ($88–132/tonne, €68–102/tonne) for mid-January, based on higher feedstock prices and other costs, sources said on Tuesday.
Current US EPS prices are in the range of 84–92 cents/lb for block and package material. Current Mexican EPS prices are in the range of 103–105 cents/lb for block material and 101–103 cents/lb for package material, as assessed by ICIS.
NOVA Chemicals announced a price increase of 4 cents/lb for non-modified EPS grades that don't include a flame retardant and 6 cents/lb for modified EPS grades that use a flame retardant, with both increases effective on 15 January, sources said.
Mexico EPS producer Polioles, which on Monday announced a 2 cent/lb increase in the differential between modified and non-modified EPS, on Tuesday came out with an additional announcement of a 4 cent/lb increase for all grades effective on 16 January, according to a customer letter obtained by ICIS.
Other North American producers were expected to follow with similar price increase announcements.
The increase for non-modified EPS is related to recent higher prices for feedstock benzene. While contract benzene settled down by 15 cents/gal to $3/gal in December, spot benzene price discussions for January rose as high as $3.66/gal on Monday.
The increase for modified EPS is based on higher costs for the flame retardant hexabromocyclododecane (HBCD).
"Costs are certainly the issue for January," said one producer.
US and Canadian producers were unsuccessful in their efforts to implement a similar differential earlier this year. If they succeed in January, it will create a 2 cent/lb difference.
It is imperative that a flame retardant differential be created, said one producer operating in the
"It's amazing what they are doing with flame retardant, just because they can," said the producer, who added that costs have increased by 50% over the year.
Major North American EPS producers are BASF, NOVA Chemicals, Flint Hills Resources, Styrochem, Nexkemia, Idesa and Polioles.
($1=€0.77)