INEOS Styrolution announces price increases for ABS in May in Europe of €70/mt, following yet more increases in costs.
After the recent steep climb in raw material prices, there were more increases from April to May, with styrene up by around €90 per metric ton.
While markets across the value chain are in turmoil, there is a feel that prices have reached a peak. With the latest rise, the chance for a downward correction has certainly increased.
There were expectations of a price decrease in May. But with a sharp increase in upstream benzene prices, of almost €400/mt, styrene prices moved up once again.
ABS prices have reached extreme high levels, for some above €3,000 per metric ton, due to shortages and high costs.
The market tightness is so severe that some buyers are unable to source volumes. And are having to heavily reduce production or shut down altogether.
While an ease in the current conditions is expected from June onwards, ongoing disruptions because of the pandemic will probably keep the market tight and prevent a major slide in prices.