Total Petrochemicals and Refining USA on Friday said it would raise prices on all grades of polystyrene to 7 cents/lb ($154/mt) beginning July 1, 2 cents/lb more than the increase it announced in mid-June.
The Friday letter to customers announcing the larger increase did not provide a reason, but market sources said hike was due to higher feedstock benzene and styrene prices.
Total told customers earlier this month that it would raise polystyrene prices by 5 cents/lb starting July 1.
Americas Styrenics and Styrolution also will increase their polystyrene prices by 7 cents/lb on July 1, according to letters the companies sent to customers over the last week.
US spot benzene prices were assessed at $5.35/gal ($1,599.65/mt) FOB US Gulf Coast Thursday, nearly 90 cents above the June benzene contract price of $4.48/gal. Spot benzene prices have jumped in the last three weeks, rising 90 cents/gal they were assessed June 4 at $4.45/gal FOB USG. Sources attributed the increase to short-covering.
Downstream from benzene, styrene was assessed Thursday at 75.70 cents/lb FOB USG, up 6.7 cents/lb since being assessed at 69 cents/lb FOB USG on June 3. Styrene has move higher on a rise in feedstock benzene prices over the last two weeks.
The July polystyrene increases follow three months of decreases. Polystyrene domestic contract prices dropped 5 cents/lb between April and May, and sources said June contract prices were down 1 cent.
June domestic contracts were assessed at $1.19-$1.21/lb delivered railcar for general-purpose polystyrene and $1.29-$1.31/lb delivered railcar for high-impact polystyrene.
