Americas Styrenics will increase the transaction price for all grades of polystyrene by 7 cents/lb ($154/mt), effective July 1, according to a letter sent to customers Monday and obtained by Platts.
Americas Styrenics' increase follows Total Petrochemicals and Refining USA's 5 cents/lb increase on all grades of polystyrene that will also go into effect July 1, according to a letter Total sent to customers last week.
Reasons for the increases were not given in the letters, but sources have said the increases were mainly due to higher feedstock benzene and styrene prices.
US spot benzene prices were last assessed at $5.17/gal ($1,545.83/mt) FOB US Gulf Coast Friday, nearly 70 cents/gal higher than the June benzene contract price of $4.48/gal. Spot benzene prices have jumped in the last two weeks, rising 72 cents/gal since a June 4 assessment of $4.45/gal FOB USG on short covering in the market as well as higher crude prices.
Downstream from benzene, styrene was last assessed Friday at 75.25 cents/lb FOB USG, a rise of 6.25 cents/lb since an assessment at 69 cents/lb FOB USG on June 3. Styrene initially rose following the blast at Ellba's styrene monomer/propylene oxide plant at Moerdijk, in the Netherlands, but has since been pressured higher on the rise in feedstock benzene.
The polystyrene increases for July will follow what likely will be three months of decreases. Polystyrene domestic contract prices dropped 5 cents/lb between April and May, and sources said June contract prices should decrease another cent.
May contracts were assessed at $1.20-$1.22/lb delivered railcar for general-purpose polystyrene and $1.30-$1.32/lb delivered railcar for high-impact polystyrene.
