SABIC announces 4 cent/lb increase for US February ABS

10 January 2014 22:47 Source:ICIS News

HOUSTON (ICIS)--SABIC has announced a 4 cent/lb ($88/tonne) price increase for its US acrylonitrile-butadiene-styrene (ABS) customers, effective on 15 February, according to a customer letter provided to ICIS on Friday.

The February initiative is based on an increase in raw material costs, according to the letter.

US styrene and butadiene (BD) spot prices have risen in recent weeks, with US BD spot prices moving as much as 10 cents/lb higher this week on supply tightness and steady demand.

US acrylonitrile (ACN) December contract prices settled at a slight decline because of weak exports, despite higher raw material costs.

SABIC is the second major US producer to announce a February increase. INEOS ABS announced a separate 4 cent/lb increase on 1 February, according to a customer letter provided to ICIS.

One buyer said that the February increases are likely to stick, now that more than one major producer has announced an increase.

The proposed February increases are in addition to separate January increases of 4 cents/lb announced by INEOS ABS, Styron and Styrolution.

At least one producer has said that it has implemented the January increase, while another producer said it has implemented the increase on some, but not all of its contacts.

Before any increases, US extrusion medium impact ABS in bulk has a domestic price range of 132-155 cents/lb, as assessed by ICIS.

Major US producers of ABS include INEOS ABS, SABIC, Styrolution and Styron.

By Tracy Dang