Europe July ABS contract prices settle down €90/tonne

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

LONDON (ICIS)--European acrylonitrile-butadiene-styrene (ABS) July contracts have settled at a reduction of €90/tonne ($111/tonne), buyers and sellers confirmed on Friday.

To reflect this change, compounding grade (natural) was assessed at €2,025-2,035/tonne FD (free delivered) NWE (northwest Europe), injection moulding (natural) at €2,115-2,140/tonne FD NWE and extrusion grade (natural) at €2,040-2,140/tonne FD NWE, according to ICIS.

The fall in prices was the result of lower feedstock costs.

July contract feedstock butadiene prices fell by €350/tonne to €1,500/tonne FD NWE and July contract styrene settled at €1,232/tonne FD Barge NWE, a reduction of €115/tonne from June.

The majority of European acrylonitrile (ACN) July contract negotiations have finalised. Nevertheless, buy and sell ideas remain far apart and a clearer picture of July ACN contract prices should emerge next week.

July’s ABS price drop represents approximately a 4% reduction from last month across the five ABS grades.

Demand for ABS is steady. Producers believe consumers are purchasing product ahead of anticipated August feedstock price increases. One producer said demand was also being helped by a few consumers who are still re-stocking following earlier July feedstock reductions.

Players said supply is good with product readily available.

No spot prices from Asia were heard this week. A combination of increased Chinese demand and high ABS prices in Asia has reduced the attractiveness of exporting cargoes to Europe, players said.

($1 = €0.81)

By: Matt Tudball
+44 208 652 3214

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