01 February 2012 20:30 [Source: ICIS news]
HOUSTON (ICIS)--SABIC Innovative Plastics on Wednesday proposed a 7-cent/lb ($154/tonne, €117/tonne) increase for its acrylonitrile butadiene styrene (ABS) pipe and sheet material in the US, effective 1 March.
Company sources cited escalating feedstock costs as the reason for the increase. Prior to the increase, extruded medium grade ABS prices were at 130-148 cents/lb. Extruded high grade ABS was at 135-153 cents/lb. Injection medium grade ABS was at 125-140 cents/lb, and injection medium grade ABS was at 130-143 cents/lb.
Buyers have been hearing and seeing proposed price increases for four weeks, and most acknowledged the rise in feedstock costs and understand producers cannot shoulder the cost without passing some of it onto the buyers.
The company previously called for a 5-cent/lb increase for the same materials effective on Wednesday, also citing increased feedstock costs.
Feedstocks acrylonitrile (ACN), butadiene (BD) and styrene have all seen upward movement in prices since the first of the year.
BD contracts for February settled split on Tuesday at an increase of 13-18 cents/lb, bringing the prices to $1.18 and $1.30/lb. BD closed the year at $0.98/lb.
The US December styrene settled mixed, but tighter than the November contract, at an average of 61 cents/lb. Spot prices have climbed an average of 8.5 cents/lb since the end of 2011.
ABS producers include INEOS ABS, Network & Diamond Polymers, SABIC, Styrolution and Styron.
($1 = €0.76)
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