Europe ABS April domestic prices down €30-50/tonne

19 April 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European acrylonitrile-butadiene-styrene (ABS) April domestic prices have settled at a reduction of €30-50/tonne ($39-65/tonne), buyers and sellers said on Friday.

Compounding grade (natural) was assessed at €2,205-2,245/tonne FD (free delivered) NWE (northwest Europe), injection moulding (natural) at €2,295-2,350/tonne FD NWE and extrusion grade (natural) at €2,220-2,350/tonne FD NWE, according to ICIS.

Suppliers reduced prices following a €64/tonne drop in the April feedstock styrene contract price, and a €60/tonne drop in acrylonitrile (ACN).

Producers which had passed through a larger portion of the March feedstock contract price increases had to reduce ABS prices by a greater amount, while producers who did not increase prices by as much in March did not pass on the full April feedstock reduction to ABS buyers. 

ABS producers had hoped to retain some margins by setting initial April targets of minus €30/tonne, but these were soon revised downwards following the ACN settlement.

“We had virtually no margin recovery,” a producer said of its April business.

Demand has started to weaken because buyers have retreated to the sidelines in the expectation of futher feedstock contract price reductions in May. It is too early to get a clear idea of May figures, but one supplier said ABS prices could drop by €20-50/tonne, depending on raw material costs. 

“We don't have reliable information, but gut feeling tells us we have not reached the bottom yet, might still see a downward trend,” a second producer said about May ABS prices.

“We expect a drop in May, but we are getting mixed messages,” a buyer of extrusion grade ABS said.

ABS has a variety of uses in the automotive, construction and household goods markets among others.

($1 = €0.77)

By: Matt Tudball
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index