European acrylonitrile butadiene styrene August contract and spot prices held steady for the third consecutive week despite falling feedstock costs for August.
A closing import arbitrage window from Asia coupled with firm demand also put sellers in a strong position, according to industry sources.
The ABS August contract price was assessed at Eur1,740/mt ($2,042.50/mt) FD NWE Wednesday, unchanged since the last week of July. The ABS spot was assessed at a Eur10/mt discount to the contract level at Eur1,730/mt ($2,031.50/mt) FD NWE Wednesday.
August ABS feedstock costs have fallen, according to S&P Global Platts data. A styrene monomer contract price monthly decrease of Eur30/mt, butadiene fall of Eur75/mt and falling acrylonitrile spot prices since the end of July indicates falling costs of around Eur35-40/mt.
However, producers have kept offers for August contract at a rollover from July in a bid to increase margins.
"Demand is very, very good," a seller source said, with others saying that firm demand is expected to continue into September.
The import arbitrage window is also closing, offering little relief to European buyers for additional volumes from Asia and placing European producers in a strong position.
The CFR China price has been increasing since end-May, rising to $1,850/mt Wednesday from $1,559/mt on May 24.
Freight and additional handling charges of $100/mt to bring product from Asia to Europe, plus inland freight, means that the import arbitrage is closing.
Next week, ABS contracts for August are expected to be closed, providing clarity on whether sellers have been able to hold on to margins.
