20 September 2013 23:59 [Source: ICIS news]
Producers were unable to pass on increases above those of the feedstock cost pass-through because of weaker-than-expected demand and, in some cases, competitive prices from Asian imports.
Buyers confirmed they had to pay higher prices in September across all grades but were successful in negotiating lower prices than some producers originally targeted for September business.
Despite expecting a price rise after August, the combined increases in the September contract prices of the three ABS feedstocks – styrene rose by €85/tonne, acrylonitrile settled at an increase of €55/tonne, and butadiene rose by €25/tonne – caught many ABS market participants by surprise.
Almost all market participants saw September demand levels fall below forecasts. Buyers said that end-use market consumption had not picked up as expected after August, with one compounder saying that demand from the white goods sector had not strengthened after the summer holidays.
Compounding grade (natural) was assessed by ICIS at €2,220-2,235/tonne FD (free delivered) NWE (northwest Europe), injection moulding (natural) at €2,310-2,340/tonne FD NWE and extrusion grade (natural) at €2,235-2,340/tonne FD NWE according to ICIS.
($1 = €0.74)
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