03 August 2011 16:00 [Source: ICIS news]
LONDON (ICIS)--Styron is targeting €90/tonne ($129/tonne) hikes on August acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) contracts, the US-based petrochemicals firm said in a statement on Wednesday.
The announcement comes on the back of a €121–129/tonne spike in the monthly feedstock styrene barge contracts, which the producer is looking to claw back.
“The overall impact is quite a bit up and we have had hard erosion on margin,” a Styron source said.
ABS buyers will look to resist such hikes amid weak demand, given that several downstream players are shut down in August, particularly in southern Europe.
One purchaser said prices could roll over until demand returns in September, while another said that an increase of €50/tonne was plausible.
Several ABS customers also cited a healthy influx of cheap Asian material coming into Europe as a reason for more modest rises this month.
Although prices in Asia were also said to be rising on higher feedstock costs, Asian ABS imports were being heard at around €1,800/tonne FD (free delivered) NWE (northwest Europe), compared with domestic values of €2,065–2,115/tonne FD NWE.
Styron is also targeting increases for its polystyrene (PS) business in August, it said. The company aims to hike general purpose polystyrene (GPPS) by €140/tonne and high impact polystyrene (HIPS) by €160/tonne, reflecting increased production costs in the form of higher polybutadiene prices.
GPPS prices are currently trading at around €1,310–1,350/tonne FD NWE. PS prices have been closely linked to trends in the styrene market and recent movements mean that PS prices are likely to increase, but discussions for August are yet to begin.
Additional reporting by Linda Naylor
($1 = €0.70)
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