ABS producer proposes 16¢/lb price hike

INEOS wants resin at $1.38 this summer

by Tom Stundza -- Purchasing, 7/23/2008 10:53:00 AM

Major producer INEOS is trying to break the market-price logjam for ABS (acrylonitrile-butadiene-styrene) resins by boosting prices. Pipe-grade material has sold at a steady average of $1.22/lb for the past three months. Now, INEOS has introduced a 16¢/lb increase for mid-August deliveries to cover rising costs for feedstock monomers.

Buyers tell subscription news service ICISpricing.com that they probably will pay some of the increase—as they recognize the cost pressures that feedstock chemicals are putting on resin manufacturers. But, they do plan to fight some of the proposed resin increase. Reason: There is a seasonal slowdown in demand for ABS under way and buyers are shying away from building inventory. ICISpricing.com also says buyers are also exploring the use of polycarbonate and other plastic resins as ABS substitutes.