High feedstock prices are behind increase from 1 March

High feedstock prices are behind increase from 1 March

Dow has announced plans to reverse the weakening in the price of ABS polymer with a E100/tonne increase from 1 March. Global product director Brett Simpson explained the rises are driven by continued pressure on feedstock prices, which remain high. “Throughout the industry, the margins for ABS have been under severe pressure since early 2001.”

ABS has emerged as a notable laggard in the recent round of price increases in the early part of this year, despite rises in the cost of key feedstocks such as styrene monomer. The continued erosion has resulted in levels for natural ABS polymer sliding, closing the normal gap over high impact polystyrene and posing a challenge to majors such as Bayer, GEP and BASF, as well as Dow.

European demand has been hit by the exodus of big customers to the East, typified by consumer appliance major Dyson’s move to Malaysia. UK consumption of ABS alone may have fallen by as much as 20,000 tonnes from its earlier peak levels in the 85,000 tonnes area, sources estimate. Meanwhile, BASF will soon bring a new world-scale plant in Antwerp onstream under its plan to focus on a small number of large, highly efficient manufacturing units around the globe.