19 January 2011 22:02 [Source: ICIS news]
The price initiative was 7 cents/lb ($154/tonne, €116/tonne) on extrusion sheet and pipe material and moulded fittings material, effective 1 February or as contracts allow.
A source said the grades of ABS affected by the nomination were among those in the lower-end markets, and the nomination was partly aimed at protecting margins.
The proposed price increase was in addition to SABIC's 9 cent/lb price increase on all grades of ABS that was set to go into effect on 1 December. Buyers, distributors and producers said about 6–9 cents/lb of that nomination succeeded.
A source close to SABIC said the price initiative was also fuelled by rising feedstock costs from the butadiene (BD) and styrene monomer (SM) segments.
SM producers have nominated an increase of 7–8 cents/lb for the January contract following a surge of 56 cents/gal in the January benzene contract.
The US BD contract price rose by 5 cents/lb because of tight supply.
Also, US housing permit data for December showed a 5.5% increase for single-family homes from November, leading to the hope that demand for ABS from the construction segment will increase in 2011.
However, a buyer said he did not expect construction demand to pick up in the first quarter.
Current US ABS domestic prices were assessed by ICIS at 135–155 cents/lb FOB (free on board) for extrusion material and at 126–145 cents/lb FOB for injection material.
($1 = €0.75)
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