ABS prices balanced by weak styrene, firm butadiene in Italy

12-Mar-14

In Italy, initial March ABS prices emerged on a mostly stable note in line with expectations, as per ChemOrbis. The lower styrene settlements coupled with stagnant demand were expected to contain potential upward pressure from the increases in butadiene contracts. The March butadiene contracts settled with increases of €80/ton from last month pushed up by tight supply whereas the styrene contracts settled €57/ton below February, weighed down by weaker benzene. Offers for European cargoes are mostly stable from last month while small discounts of €10/ton were also reported last week. Locally-held Far East Asian cargoes, which form the low ends of the ABS ranges, were also rolled over from February. A distributor reported that he left his prices unchanged considering thin demand in February despite firmer butadiene costs. Buyers are still mulling over whether to make new purchases or not pointing to their muted end product demand after voicing lower buy ideas last week. A converter reported receiving steady March offers for West European cargoes, but added that he is staying sidelined for now given slow demand for his end products at the beginning of this month. Another converter received initial March offers for West European ABS with increases of €20/ton from last month. He commented, “Our end product demand is irregular and we are hesitant about making new purchases. However, we expect demand to start improving as of this month due to the high season which lasts until April or May.” According to ChemOrbis, in Germany, a converter settled his March gentlemen’s agreements for West European ABS with discounts of €20/ton from last month. “Our supplier was initially aiming for rollovers but they stepped back from their prices afterwards due to resistance from the buyers’ side. Our end product demand is steady so we make purchases on a regular basis,” the buyer added.