05 March 2008 23:59 [Source: ICIS news]
HOUSTON (ICIS news)--Two US acrylonitrile-butadiene-styrene (ABS) suppliers have cited rising feedstock costs in proposing 5 cents/lb ($110/tonne) price increases for injection-grade resins, market sources said on Wednesday.
A BASF representative said the company proposed a 5 cent/lb (€73/tonne) increase to take effect 13 March or as contracts permit. The company needs the increase to offset price hikes in feedstocks acrylonitrile (ACN) and butadiene (BD), the representative said.
Two market sources said SABIC nominated a similar price increase for April for injection-grade material to offset raw materials costs. SABIC representatives declined to confirm or deny price-change proposals.
“I don’t think the buyers will like it, but I think they’ll get” at least part of the increase, one buyer said. “That’s because of higher feedstock costs and Dow’s leaving the market.”
Dow Chemical’s exit from the non-automotive ABS market on 1 February shortened supply, buyers said, leaving less room for them to manoeuvre around price increases.
Medium-grade injection ABS bulk prices are currently 118-124 cents/lb ($2,601-2,734/tonne), and high-grade injection bulk prices 122-129 cents/lb ($2,690-2,844), according to global chemical market intelligence service ICIS pricing.
For more on ABS visit ICIS chemical intelligence
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