Rollovers, small decreases for Europe October ABS amid BASF concerns

LONDON (ICIS)–The European acrylonitrile-butadiene-styrene (ABS) market has settled October prices at rollovers to decreases of €10/tonne, depending on the grade, while the market still enjoys healthy demand, sources said on Friday.

On the sidelines of the 20th K Fair started in Dusseldorf, Germany, this week, there was market talk for the possible impact the fatal explosion and fire at BASF’s Ludwigshafen site could have on the ABS market.

According to sources, there is no concern for standard ABS as Ludwigshafen is mainly for specialty grades.

With regards to feedstock styrene prices, some players said that there are enough styrene assets in Europe and worldwide adding that styrene is also easier to ship.

As the November settlement is approaching, the price will depend a lot on what BASF will communicate, sources said.

Meanwhile, other market participants said that styrene prices are going to be driven by sentiment and not by market fundamentals as customers are getting nervous, while Asian styrene prices also increase.

A producer said that for the moment it can give no price confirmation for its freely negotiated November ABS business and has put everything on hold until the issues at BASF become clear enough.

With regards to the market’s outlook, players said during K Fair that no big changes are expected for 2017, while the average growth rate for the Europe, Middle East and Africa (EMEA) region is expected to be around by 3-4%.

For the first half of the current year, the growth rate of the EMEA countries has been at 9%, according to a supplier, who added that the biggest competitor for the European ABS has always been imports.

The Chinese plants are more and more participating in the export business towards Europe and that raises concerns for European players, it added.