SABIC seeks 9 cent/lb US ABS increase on higher feedstocks

09 February 2011 20:39  [Source: ICIS news]

HOUSTON (ICIS)--SABIC Innovative Plastics is seeking a price increase on all grades of acrylonitrile-butadiene-styrene (ABS) copolymers, as producers take advantage of stronger demand to pass through higher feedstock costs, sources said on Wednesday.

The price increase initiative is for 9 cents/lb ($198/tonne, €145/tonne) effective on 28 February or as contracts allow.

The price increase reflects rising feedstock costs from acrylonitrile (ACN), butadiene (BD) and styrene monomer (SM).

The price increase nomination comes on the heels of confirmed ABS initiatives from INEOS ABS and Styron, each for 6 cents/lb, effective on 21 February or as contracts allow.

Sources also said BASF announced an initiative for 9 cents/lb, effective on 10 January, but confirmation has not been received.

Several buyers said that stronger demand and sales of ABS should lead to the initiatives finding traction quickly.

In the key automobile industry, US auto sales increased 17.3% year on year, according to sales data.

Buyers in the consumer-electronics and medical segments also said ABS demand was strong enough to support higher prices.

Currently, US domestic ABS prices are assessed by ICIS at 135-155 cents/lb FOB (free on board) for extrusion-grade material and at 126-145 cents/lb FOB for injection-grade material.

($1 = €0.73).

To learn more about ABS visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: John Dietrich

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