INEOS targets €150/tonne increase for Europe March ABS

08 February 2011 10:02  [Source: ICIS news]

LONDON (ICIS)--INEOS is targeting an increase of €150/tonne ($203/tonne) in the price of coloured acrylonitrile butadiene styrene (ABS) deliveries in Europe from 1 March, because of soaring feedstock costs, a company source said on Tuesday.

This follows the targeted increase of €150/tonne that INEOS announced last month for February ABS contract prices, negotiations for which remain ongoing.

The source cited recent spikes in upstream costs, including the increases in the upstream February styrene barge contract. Two of the contracts settled at an increase of €105/tonne from January, while the other rose by €78/tonne.

“For the second month styrene increased much more than expected, so we need to raise prices to retain margins,” the source said.

Consumers, however, were adamant that not even February’s targeted €150/tonne hike was justified by the cost increases seen so far, especially after the €100-130/tonne rise that took place in January.

Styron and Styrolution were targeting €110/tonne increases for February contracts, which were expected to settle by the end of this week.

Several customers said, however, that they could negotiate more modest increases of around plus €80/tonne.

“INEOS are out. We are simply not buying from them any more,” insisted one buyer.

Coloured injection moulding-grade ABS was currently assessed at €2,200-2,370/tonne FD (free delivered) NWE (northwest Europe). 

($1 = €0.74)

For more on ABS visit ICIS chemical intelligence 
To discuss issues facing the chemical industry go to ICIS connect

By: Amandeep Parmar
+44 208 652 3214

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