BASF seeks 4 cent/lb price hike for May US ABS

29 April 2011 20:36  [Source: ICIS news]

HOUSTON (ICIS)--BASF is seeking a price increase on US acrylonitrile-butadiene-styrene (ABS) because of higher feedstock costs, sources said on Friday.

The price increase nomination was for 4 cents/lb ($88/tonne, €59/tonne) effective 16 May, or as contracts allowed, according to a buyer.

The initiative brings BASF in line with other US producers INEOS ABS and Styron, which each announced they were seeking a 4 cent/lb price increase on general purpose ABS effective 1 May, or as contracts allow. Styron is also seeking a 6 cent/lb price hike on special high heat grades of ABS.

SABIC Innovative Plastics announced a 5 cent/lb increase for its extruded pipe and sheet market effective 2 May, or as contracts allow.

US domestic ABS prices were assessed by ICIS at 148-168 cents/lb DEL (delivered) for extrusion material and 139-158 cents/lb for injection material.

One buyer said he expects the price nominations will go through, based on rising costs for acrylonitrile and butadiene.

"Feedstocks are so tight, and the availability as far as production is concerned is limited," the buyer said. "Until things start to ease up a little bit, they can increase their prices."

INEOS ABS also announced a price increase nomination of 5 cents/lb effective 1 June, on top of the 4 cents/lb they are seeking in May, according to a customer letter obtained by ICIS.

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

($1 = €0.67)

For more on acrylonitrile-butadiene-styrene visit ICIS chemical intelligence

By: Michelle Klump
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