PC / ABS up sharply as feedstocks soar

Material availability tightened in April due to production cutbacks and delivery times lengthened. There was also a shortage of imported Asian material and buyers were forced to look to European suppliers.

Polycarbonate demand for automotive and E&E applications was much livelier over the last three months, but overall remains well below pre-crisis levels.

Producers are determined to push polycarbonate prices even higher during Q2 to recover the rise in phenol costs and improve margins.

ABS producers have more or less achieved their target over the last three months with substantial price increases having been implemented. Prices have soared by over €300/tonne across the board since February due to sizeable increases in the cost of styrene, butadiene and acrylonitrile feedstock, and a need to recover margin.

European ABS supply has tightened since March. Imported material is much scarcer and there have been unscheduled production cuts by European producers. Demand is recovering, particularly from the automotive sector, but remains at below pre-crisis levels.

ABS producers have tabled further planned price hikes of €200/tonne from May. Given the soaring cost of butadiene and styrene, continuing supply shortages, a lack of imported material and stronger sales, further price increases look inevitable.