Europe ABS producers 'keen to shift high volumes'
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)
To discuss issues facing the chemical industry go to ICIS connect
By: Stuart Moir
+44 20 8652 3214
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
| ICIS news FREE TRIAL |
| Get access to breaking chemical news as it happens. |
| ICIS Global Petrochemical Index (IPEX) |
| ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index |
Related Articles
- 28 Nov 08 23:59 Europe ABS falls €70/t, December to be even lower
- 14 Nov 08 17:14 Lower ABS prices in Europe fail to attract buyers
- 17 Oct 08 16:52 India’s INEOS ABS logs small hike in Q3 net profit
- 17 Oct 08 14:43 Europe auto cuts could threaten ABS demand
- 28 Sep 08 15:28 EPCA ’08: Europe traders struggle with US arbitrage
- 26 Sep 08 17:32 Texas ACN plant restarts, problems remain
- 27 Aug 08 16:38 Europe ABS makers suffer worst margins in years
- 22 Aug 08 18:55 Dow ABS, SAN hike to succeed, buyer says
- 22 Aug 08 23:59 Europe August ABS increases €40/t on average
- 25 Jul 08 23:59 Europe ABS increases €50-75/tonne in July
- 27 Jun 08 23:59 Europe ABS contract prices up €20-25/t
Latest News
- 19 Jun 13 17:56 Europe EPS international trade flows rise in March
- 19 Jun 13 17:52 EU parliament committee urges bans on fluorinated gases
- 19 Jun 13 17:39 US jet fuel consumption gains 31% inventories drop 2.2%
- 19 Jun 13 17:27 Europe butyl acrylate spot prices rise on limited supply
- 19 Jun 13 17:19 Brenntag 'holding its own' amid still-challenging market conditions