26 September 2008 15:52 [Source: ICIS news]
LONDON (ICIS news)--Acrylonitrile-butadiene-styrene (ABS) producers are keen to shift high volumes rather than make profits during the fourth quarter due to an oversupply in Europe, a distributor said on Friday.
“European output is high. Producers are only interested in shifting high volumes rather than making a profit. They are selling irresponsibly,” said the European distributor.
January 2009 could be problematic as a result, the source added.
Producers denied undercutting prices for October and the fourth-quarter, after a roll over from August into September.
One said that it would still push for a €50/tonne ($73/tonne) increase in October despite the market being weaker than in the previous two years.
Another producer said that because of high butadiene and acrylonitrile (ACN) prices it would be impossible to lower prices in the fourth quarter. Falling styrene monomer prices would not put the brakes on any increases, it added.
Buyers said they were unlikely to accept ABS price hikes, stating that rollovers were more realistic.
They had been offered notional increases of €50-80/tonne for natural grades, with one reporting a proposed increase of €200/tonne for colour injection moulded ABS.
A 10% slowdown in the automotive, appliance, electronics, and packaging markets could possibly prompt producers to offer special deals, according to another distributor.
There were suggestions of producers cutting capacity to deal with low demand but this was unconfirmed.
($1 = €0.68)
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