30 August 2013 17:31 [Source: ICIS news]
HOUSTON (ICIS)--US petrochemical makers who supply materials such as acrylonitrile (ACN), acrylonitrile-butadiene-styrene (ABS) and polycarbonate (PC) to the auto industry are gearing up for what is expected to be the biggest auto production month of the year.
"We're seeing strong orders for September," one petchem source said on Friday. "Also from a demand perspective, October is being positioned as the largest vehicle build month for ?xml:namespace>
Other sources noted that
Demand has ramped back up as automakers start to increase production. That could put some upward pricing pressure on petrochemicals, sources said. Others said the auto industry has done a good job of communicating with suppliers and, as such, suppliers, including petrochemical makers, are ready to meet the increased demand from the auto industry.
The positive forecast for demand through at least October is welcomed news for petrochemical makers who supply the raw materials that go into plastic parts, body panels and interior trim for the auto industry. There has been some concern among automakers and their suppliers that the current sales pace cannot continue for much longer. Economists and auto forecasters have noted that what's driving auto sales higher now is pent-up demand from the 2008 recession. Once that demand is satisfied, some forecasters are worried that auto sales will fall off sharply rather than gradually. Many worry that the
"It's something we're always keeping our eye on," said one source in
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