European ABS market hold mixed views over September price direction

02 September 2016 16:33 Source:ICIS News

LONDON (ICIS)--Views on September price direction in the European acrylonitrile-butadiene-styrene (ABS) market were mixed as some buyers looked for reductions or rollovers, while producers were targeting rollovers to increases, sources said on Friday.

Trinseo announced a €20/tonne increase on ABS prices for September in a press release on Thursday following the settlement of the September feedstock styrene contract. 

Styrene dropped €20/tonne, but butadiene (BD) rose €15/tonne and acrylonitrile (ACN) could see some upwards movement as its feedstock, propylene, increased €20/tonne for September. The ACN market is also currently tight, which could add to the bullish sentiment. 

Other producers are looking at rollovers for September because of the mixed feedstock price movements. 

One producer said it wanted to keep prices stable in order to remain competitive against Asian imports, which have seen a strong increase.

Buyers do not expect to pay an increase in September because of the lower styrene costs, and some are expecting a rollover from August.

However, one buyer said it will push for a decrease in September prices because of the monomer drop, and because of good availability and competitive prices heard from Asia. 

August demand was better than expected, with one producer seeing its highest August levels for five years. A buyer said it was also happy with its August demand levels, though this was coming from a fairly flat July. 

By Matt Tudball