London — European October acrylonitrile butadiene styrene prices have fallen on a monthly basis, but seller margins are still expected to rise on firm demand, according to sources.
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The ABS contract price for October was assessed at Eur1,845/mt ($2,189/mt) FD NWE Wednesday, down Eur15 from the last week of September, despite sellers initially hoping for a rollover in prices.
Nevertheless, with costs falling around Eur30/mt in October, seller margins are expected to increase this month.
A seller source said that demand was easing in October from the "very excellent" September, but uptake remained high.
In addition, there was limited import competition. Although Asian prices have fallen in the past few weeks, which has led to an import arbitrage opening on paper, expectations of even lower prices in Europe in the coming few months have diverted buyers' attention.
The ABS spot price in Asia was assessed at $1,950/mt CFR China, declining $30/mt on the week.
The market is expecting declines in feedstock prices in the coming months.
In the styrene market, the spot price was last assessed at $1,183/mt FOB Wednesday, down from $1,229.50/mt on October 2.
With the styrene market remaining in a backwardation, a buyer source said another large downward correction in the contract price in November could be possible.