INEOS targets €150/tonne February price hike on Europe ABS

21 January 2011 12:01  [Source: ICIS news]

LONDON (ICIS)--INEOS is targeting a €150/tonne ($203/tonne) hike on coloured acrylonitrile butadiene styrene (ABS) deliveries in Europe from 1 February, a company source said on Friday.  

The source said this was due to the €100-130/tonne January increase not being enough to cover the raw material, freight and pigment hikes seen this month.

With upstream costs expected to rise further in February the ABS producer was looking to catch up and retain margins.

“We made the January announcement in December but the [feedstock] styrene monomer jumped much, much higher than forecast,” the source said, adding: “So this new increase is to catch up January raw material hikes plus our forecast of more upstream increases for February.

Buyers were sceptical of the size of the planned rise, however, as one stated that the manufacturing costs only rose by around €105/tonne, which was regained in the €100-130/tonne hike passed down to customers in January.

One buyer was adamant, saying: “It’s too early to tell for February, but any increase will be nowhere near what we had this month.”

Another customer of coloured grade ABS indicated plus €50/tonne would be more palatable based on styrene and pigment costs, though it was concerned over tightness currently seen in the sector.

“There is a short market for coloured ABS. Lead times are 12-14 weeks, whereas 2 weeks is normal,” the customer stated.

Most players felt that February’s ABS numbers would largely depend on next month's styrene barge contract, which saw a rise of €118-130/tonne in January.

Based on this increase, coloured injection moulding grade ABS was currently assessed at €2,200-2,370/tonne FD (free delivered) NWE (northwest Europe), according to ICIS. 

($1 = €0.74)

For more on ABS visit ICIS chemical intelligence
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By: Amandeep Parmar
+44 208 652 3214

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