01 November 2013 18:45 [Source: ICIS news]
LONDON (ICIS)--Participants in the European acrylonitrile-butadiene-styrene (ABS) market are expecting to see lower November prices on the back of an expected drop in the November feedstock styrene monomer (SM) contract price, sources said on Friday.
Many SM players were absent from the market this week due to public holidays in Europe, delaying the contract settlement until next week.
An ABS producer is taking a bullish stance on November prices following the €75/tonne increase in the November butadiene (BD) because of strong demand.
“We had a very strong October. It's been strong from all sectors, one of the strongest months this year,” the producer said.
“Looking into November demand at this moment it's tidy, especially after the strong October,” the producer added.
Other producers are waiting for the SM settlement before assessing it against the BD increase and making offers to their customers.
Several ABS producers were also absent from the market this week. A producer said earlier in the week that ABS price discussions will not begin until next week.
Buyers expect to see prices soften in November but are waiting for the SM settlement before discussing reductions with suppliers.
One buyer of extrusion grade material said it expects reductions for November.
“We have been offered a €70/tonne reduction from October. Nothing is finally settled. [We] will know more on Monday,” the buyer said.
“On general purpose [ABS grades], there will be a small decrease,” a second buyer said of its expectations of November offers from producers.
A much clearer picture of November price directions will emerge next week after the SM settlement and when all ABS players have returned to the market.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections