16 November 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European acrylonitrile-butadiene-styrene (ABS) November contracts have settled at a rollover to €20/tonne (€26/tonne) reduction, buyers and sellers said on Friday.
Compounding grade (natural) was assessed at €2,165-2,205/tonne FD (free delivered) NWE (northwest Europe), injection moulding (natural) at €2,255-2,310/tonne FD NWE and extrusion grade (natural) at €2,180-2,310/tonne FD NWE according to ICIS.
The customers that accepted rollovers did so because of the smaller-than-expected drop in the feedstock styrene November contract price.
The November styrene contract price was settled €5/tonne down from October.
However, more aggressive negotiations came from some buyers who insisted on having a reduction in November’s prices to meet the drop in feedstock cost, and to acknowledge a weakening demand.
The November contract butadiene and acrylonitrile prices settled at reductions of €60/tonne and €40-45/tonne respectively.
Some ABS consumers had larger reductions, but this was more to bring them in line with current market prices after not taking full volumes in previous months, keeping their prices high.
Demand for ABS within Europe has started to drop off slight compared to October, with one distributor seeing a reduction of about 10% in volumes versus last month.
Cheaper Asian material is still available in Europe as producers in Asia try to shift stock following a drop off in demand in the Asian market. Product was available for purchase at €1,750/tonne, a producer said.
Supply for ABS remains good, despite one producer was running at below 70% production capacity, and the ABS train outage at Styron’s facility in Terneuzen.
($1 = €0.78)
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