SABIC announced an 8-cent increase for US styrene monomer out of its Cosmar, Louisiana, facility, effective this week, according to a letter sent to customers.
"This announcement is necessary in light of rising material costs coupled with current market conditions," according to the letter.
The increase is for FOB material, the letter said. It also is in line with a recent jump in spot prices, which have been pushed higher by climbing benzene and ethylene prices, as well as tight supplies.
Variable costs for styrene were near 68 cents/lb on Monday, based on spot feedstock prices. Based on April contracts for feedstocks, variable costs were closer to 60.5 cents/lb. The last reported spot deals were at 70.5 cents/lb and 71 cents/lb.
The increase pushes the domestic contract price for styrene into the mid-70s cents/lb, a source said.
