22 August 2008 18:55 [Source: ICIS news]
LONDON (ICIS news)--Further increases of €50/tonne ($75/tonne) on acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) targeted by Dow in September had a good chance of being achieved, a buyer said on Friday.
Dow announced on 21 August that they would be targeting price hikes in September. A source close to the company said there were numerous reasons that higher price ideas were needed.
The source believed that demand for both products still remained strong, despite the seasonal slowdown. It also said that feedstock prices were still a concern and that, although styrene had seen a slight downturn, it was still trading at relatively high prices. It added that July and August increases had not been sufficient to recover lost margins.
A buyer said that hikes were likely as global capacity for both products had decreased as some producers had cut rates because of poor demand. It also added that the butadiene shortage also put pressure on price ideas.
One producer was undecided as to whether it would target increases in September as its decision would depend upon feedstock movements. Another manufacturer said it would target higher prices in September but did not specify a figure.
($1 = €0.67)
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