21 January 2011 12:01 [Source: ICIS news]
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.
($1 = €0.74)
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|