04 September 2012 18:49 [Source: ICIS news]
LONDON (ICIS)-- Styrenics producer Styron is targeting a €90/tonne ($113/tonne) increase in September for acrylonitrile-butadiene-styrene (ABS) and styrene acrylonitrile (SAN), the company said in a statement on Tuesday.
The price increase in SAN and ABS was a response to the rising costs associated with the manufacturing of polystyrene and copolymers grades in Europe, the company said.
The move by plastics, latex and rubber producer Styron came following the settlement of the September styrene barge contract at €1,410/tonne FD (free delivered) NWE (northwest Europe), up by €43/tonne from its August level.
Price increases beyond the feedstock cost price pass-through have been caused because a larger-than-forecast increase of €155-160/tonne in August acrylonitrile (ACN), coupled with increased styrene prices, saw producers’ margins contract considerably.
ABS prices rose by €110/tonne in August, to €2,135-2,145/tonne FD NWE for compounding grade, €2,225-2,250/tonne FD NWE for injection moulding (natural) and €2,150-2,250/tonne FD NWE for extrusion grade (natural), up 5% from July, according to ICIS.
SAN prices also increased €110/tonne for August, with compounding grade assessed at €1,910-1,920/tonne FD NWE, commercial grade at €2,150-2,270/tonne FD NWE and speciality grade at €2,380-3,090/tonne FD NWE according to ICIS.
However, some SAN consumers said on Tuesday they are reluctant to accept large increases. Some are looking to negotiate an increase of around €50/tonne for September because end user demand in industries such as construction and appliances is being affected by ongoing weak macroeconomic conditions.
Demand for both ABS and SAN increased slightly at the end of August as manufacturers in southern Europe began production following the August summer holiday period, and producers believe demand for September will be stable.
ABS is used in the automotive and household goods sectors and SAN is used in the manufacture of household goods.
In related news, Styron also announced a €100/tonne (£126/tonne) increase in general purpose polystyrene grades (GPPS) and high impact polystyrene grades (HIPS) on Tuesday.
($1 = €0.79)
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