10 July, 2018
According to data from ChemOrbis Price Index, import ABS prices on CIF China basis have sunk to their lowest levels since early April as several Asian suppliers have approached the country with additional decreases this week in the face of thin buying interest as well as fluctuating spot styrene prices.
A Taiwanese producer implemented additional decreases of $30/ton on its ABS offers to China at the start of this week while a Thai producer also cut its ABS offers further by $20-40/ton, with a company source noting that their new offer levels are open to negotiations.
A trader operating in China reported that their ABS offers tumbled by $20-60/ton from last week. “Market activity is lackluster as players are evaluating whether the market sentiment will change or not following the recent rebound in styrene prices. We think that the uncertainty in Asia’s spot styrene market continues to put pressure on ABS,” he commented.
Another trader also opined, “Spot styrene prices have turned firm recently. However, ABS prices are yet to follow suit as demand remains weak. Buyers are cautious about the outlook.”
The weekly average of spot styrene prices on FOB South Korea basis has slightly rebounded from its two-and-a-half-month low, according to ChemOrbis Price Wizard data. Despite a week over week increase, spot prices have been tracking a quite volatile trend recently.