London — The outlook for European September acrylonitrile butadiene styrene prices is bullish despite supply being bolstered by a rise in imports, according to S&P Global Platts data.
The anticipated hike in ABS feedstock costs supported expectations of higher September prices.
The September butadiene contract price was settled Wednesday at Eur1,175/mt, up Eur50/mt on the month.
An even larger increase was expected in the styrene market. Early expectations were heard in the range Eur1,395-1,415/mt for the September styrene contract price, pointing to a Eur80-100/mt rise on the month over the Eur1,315/mt August level.
Acrylonitrile prices remained high, with spot assessed stable so far through August at $2,090/mt CIF ARA on tight fundamentals.
Although feedstock costs pointed to a possibility of higher September ABS prices, supply was heard supported by an increase in imports this month.
A seller source said earlier in the month import volumes were rising on a year-on-year basis, with customers quoting competitive import prices when negotiating prices.
The EU's ABS import arbitrage from Asia was seen open this month.
ABS CFR China spot prices have been trending in the range $1,900-$1,950/mt in the past two months. The FD NWE spot price was assessed at Eur1,830/mt ($2,114/mt) Wednesday. The arbitrage is open as price hikes in Europe are anticipated in September.
