Styron seeking 7 cent/lb price hike on US ABS on higher feeds

02 March 2011 23:38  [Source: ICIS news]

HOUSTON (ICIS)--Styron is seeking a price increase on US acrylonitrile-butadiene-styrene (ABS) because of higher feedstock costs, a source close to the company said on Wednesday.

The price increase initiative will be for 7 cents/lb ($154/tonne, €113/tonne) effective on 1 April, or as contracts allow.

The company also announced a price increase of 9 cents/lb for high-heat resistant ABS.

The price increase nomination comes on the heels of another announcement from INEOS ABS, which is seeking a price increase of 5 cents/lb on ABS and 9 cents/lb on high-heat resistant ABS, also effective on 1 April.

Price increase initiatives on ABS that took effect in March, on average for 6 cents/lb, found traction, buyers and distributors said.

Demand for ABS has been described as strong to healthy, especially relative to the time of year, when construction orders are thin because of colder weather.

In the US automotive sector, a significant ABS market, sales increased 27.3% year on year for February.

Several producers said that record ABS prices in Asia will also lend strength to upcoming US price increase initiatives.

The recent price increase nominations have been sparked mostly by rising feedstock costs in the US acrylonitrile (ACN) and butadiene (BD) markets, producers said.

Major US producers of ABS are BASF, INEOS ABS, SABIC Innovative Plastics and Styron.

($1 = €0.73)

To learn more about ABS visit ICIS chemical intelligence

By: John Dietrich

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