Europe Jan ABS up €90-100/tonne on costs, rises in Feb expected

20 January 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European January acrylonitrile-butadiene-styrene (ABS) contracts settled up by €90-100/tonne because of soaring feedstock costs, buyers and sellers said on Friday.

ABS producers were originally targeting up to €135/tonne ($175/tonne) increases but were largely successful in passing on the €120/tonne and €50/tonne hikes seen in upstream styrene and butadiene (BD), respectively.

Most buyers accept the price increases but fear a further jump in February as there is no let up expected in the upward trend of feedstock costs.

Spain-based ELIX already announced another €100-130/tonne hike on ABS in anticipation of sizeable styrene and butadiene increases next month.

Other European producers indicated they may also target triple-digit increases next month, but while customers are expecting a price rise, they will wait for the February styrene barge contract to settle before discussing exact figures.

One extrusion grade buyer said that it had so far received indications that prices could jump anywhere between €40/tonne and €100/tonne, and therefore it will wait for a clearer picture to emerge.

Compounding grade ABS is pegged at €1,970-1,980/tonne FD (free delivered) NWE (northwest Europe).

($1 = €0.77)

For more on ABS visit ICIS chemical intelligence
By: Amandeep Parmar
+44 208 652 3214

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