US domestic polystyrene contract increases are expected for April due to an anticipated increase in the feedstock benzene contract price for April, sources on the sidelines of the National Plastics Exposition said Tuesday.
With US benzene spot assessed at $2.56/gal ($765/mt) FOB US Gulf Coast — 48-52 cents/gal above March US contracts — sources said there would likely be an increase in polystyrene in April of at least 3 cents/lb ($66/mt) and maybe as high as 5 cents/lb ($110/mt).
Per market feedback, a 10 cents/gal increase in benzene contracts is equal to a 1 cent/lb increase in polystyrene contracts.
Any increase in polystyrene contracts would be the first since July.
In addition to the higher feedstock benzene prices, sources said polystyrene demand was strong and supply was tight, which would also lend support for an increase.
March US domestic contracts were assessed at $1.005-1.025/lb delivered rail car for general-purpose and $1.105-1.125/lb delivered rail car for high-impact polystyrene, both rollovers from February.
– Platts.com
