Players European market acrylic-nitrile-butadiene-styrene (ABS) last week agreed on the June price of material at an average of more than May prices for EUR30-50 per ton, amid fears the consequences Brexit, told ICIS market sources.
At the same time, prices for Extrusion grade increased by a large amount, the sources said.
So, one of the producers said he expects volatility in the polymer market in connection with the results of a referendum held on June 23 in the UK, on its exit from the EU.
“Markets do not like uncertainty, but soon the situation should return to normal.”
Demand remained at a high level against the backdrop of talk in the market about a possible significant drop in quotations in July styrene.
Meanwhile, one of the producers said, that he was forced to reduce its prodahi 5% this month, as from the Asian material was strong competition due to the lower price offers on it, and because buyers expect lower styrene quotes in July.
Another manufacturer said that demand in its core business in June was higher than in May and at the same level as last year, although the spot in volumes were somewhat lower.
The extrusion was the same situation the other sector. In particular, one of the producers said that even though the expectation of market players about lower prices in July, he again sold all volumes of material in this month.
According to the price review ICIS-MRC, the Russian market in June, the ABS is observed decrease in quotations. Prices of Russian ABS plastics production (points) last week voiced in the corridor 139 000-144 000 rubles. per tonne CPT Moscow, including VAT, for natural brands. Also, one of the traders said reduced demand for Korean ABS brand in the domestic Russian market in June, which could lead to a further fall in prices.