08 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Producers in the European acrylonitrile-butadiene-styrene (ABS) market have targeted reductions of €30-50/tonne because of drops in feedstock styrene monomer (SM) prices and the lower acrylonitrile (ACN) contract price which has been agreed down €35/tonne.
The Butadiene (BD) November contract price rose €75/tonne.
“Now into the month, the feedback [from the market] is more €30-40/tonne down [from October],” a European producer who initially targeted a €20/tonne drop said.
Buyers were pushing for, and in some cases achieving, reductions of €40-50/tonne.
“In general we got reductions of €40-50/tonne. The majority [of suppliers gave] €40/tonne, only one made a €50/tonne reduction," a buyer of compounding grade said.
The buyer added that the steeper reduction came from a producer who had higher October prices.
Several market participants said cheaper South Korean injection moulding and compounding grade material was putting pressure on some European producers' prices.
“Many [suppliers] were complaining about order entry for November, one in particular … complaining about Korean suppliers,” a buyer said.
Sources in the European market said South Korean injection moulding material was available at €1,620-1,630/tonne FD (free delivered) Italy, and compounding grade material at €1,700/tonne FD Italy.
However, not all suppliers in Europe are in direct competition with Asian producers.
Views on demand are mixed between producers and buyers, as well as between different grades. A buyer of extrusion grade said demand has increased in November but it is not clear what is driving it. It has had to increase production in order to meet current orders.
By contrast, a distributor of injection moulding and compounding grade has seen demand drop off from a promising start at the beginning of the month.
“Not so spectacular at the end of the day. Flattered a bit after a good start,” the buyer said of its November demand levels.
$1 = €0.74)
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