Europe's closed import arbitrage from Asia for acrylonitrile butadiene styrene, as well as higher feedstock costs and tight fundamentals, have supported a large hike for European ABS contract and spot prices, according to S&P Global Platts data.
The ABS contract price was assessed at Eur1,850/mt ($2,216/mt) FD NWE Wednesday, up Eur110/mt from the end of August. The ABS spot price was assessed at Eur1,820/mt ($2,180/mt) FD NWE Wednesday, up Eur90/mt over the month.
The CFR China ABS spot price has trended at around $2,010-$2,050/mt range this month, an indication that the import arbitrage is closed, based on freight barge costs of around $100/mt between the Far East and Europe and additional inland freight costs of around Eur20-30/mt for incremental spot product.
Lower import competition has been met with higher feedstock costs for the month.
A Eur190/mt surge in the September styrene contract price and a Eur25/mt rise in the butadiene contract price, in addition to bullish acrylonitrile spot prices, have pushed costs higher on the month.
Southern European ABS buyers also faced additional supply constraints due to railway issues connecting Northwest and Southern Europe, providing upward pressure to prices.
Looking ahead to October, an ABS buyer said this week the outlook remained extremely unclear as feedstock price movements had been mixed.
Styrene spot prices have spiralled downwards so far in September and the spot price was assessed at $1,331/mt FOB ARA Thursday, down from $1,513/mt September 1.
However, acrylonitrile spot prices jumped to an 11-week high this week and were assessed at $1,625/mt CIF ARA Tuesday amid a lack of US imports.
Butadiene prices have also been on the rise this month and were assessed at Eur950/mt FD NWE Thursday, up from Eur847/mt September 1.
