ABS prices prone to discounts as supply concerns fade in Europe
by ChemOrbis Editorial Team - content@chemorbis.com
In Europe, limited availability helped suppliers to achieve rollovers to only slight decreases in October despite the €110/ton decrease in monthly styrene contracts. Higher butadiene contracts and spot ACN prices also supported sellers’ firm stance in October.
However, slowing end-demand and bearish expectations for the outcome of the next styrene settlement pushed players out of the market. On top of these, easing supplies contributed to the waiting stance of buyers following the re-opening of the railway line in Germany, which disrupted transportation for nearly two months.
A distributor from Italy said, “ABS supplies remained tight in early October, which gave our supplier an upper hand in seeking rollovers. However, supply has improved in late October and styrene prices are softer compared to the beginning of the month. Therefore, we expect €50/ton decreases in November ABS prices in case styrene contracts settle €100/ton lower as expected.”
The November outlook is expected to be under pressure from growing supplies and poor demand dynamics as higher ACN prices have failed to boost the sentiment in the ABS market as was already mentioned in ChemOrbis Daily Headline ABS markets remain indifferent to bullish ACN costs in Asia, Europe .
However, slowing end-demand and bearish expectations for the outcome of the next styrene settlement pushed players out of the market. On top of these, easing supplies contributed to the waiting stance of buyers following the re-opening of the railway line in Germany, which disrupted transportation for nearly two months.
A distributor from Italy said, “ABS supplies remained tight in early October, which gave our supplier an upper hand in seeking rollovers. However, supply has improved in late October and styrene prices are softer compared to the beginning of the month. Therefore, we expect €50/ton decreases in November ABS prices in case styrene contracts settle €100/ton lower as expected.”
The November outlook is expected to be under pressure from growing supplies and poor demand dynamics as higher ACN prices have failed to boost the sentiment in the ABS market as was already mentioned in ChemOrbis Daily Headline ABS markets remain indifferent to bullish ACN costs in Asia, Europe .
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