ABS and POM drift down / Other types predominantly stable / Downward pressure mounts due to drop in benzene price / C4 costs and rugged demand should counteract the development
After a long standstill, the European market for engineering thermoplastics showed signs of movement again in October. That ABS reacted to the heavy fall in the styrene contract for October is not surprising. Producers were forced to pass on around half the reduction in the cost of the material´s main component (for details, see the latest styrenics report). This time, the price of POM also declined as the constant influx of cheap Asian imports took its toll, especially with the standard copolymer grades. Other products, such as PC and the polyamides, remained stable despite the fall in the price of benzene, although they certainly came under pressure. Because of the many contracts tied to C3, PP compounds remained stable (for details, see the latest PP report).
The November notation for benzene once again dropped significantly by EUR 78/t, and now stands at EUR 848/t marking, the first time in a long while it has fallen below EUR 900/t. Though the downward trend is being diluted by the effects of the increase in C4, it is quite likely that prices will at least begin to crumble in many areas influenced by benzene. PP compounds will also inevitably decline in November when orders tied the price of the C3 contract are pulled downwards.