ABS prices rise for second week given higher styrene
In Southeast Asia, ABS prices witnessed increases for the second week in a row owing to firmer spot styrene costs in Asia. Although demand remained sluggish ahead of the approaching Chinese New Year holidays, some sellers elected to lift their offers, pointing to the recent increases in Asian styrene. Import ABS prices were quoted at $1150-1160/ton on a CIF SEA, cash equivalent basis. The range indicated a $10/ton increase on both ends when compared to the previous week. Within the range, Taiwanese and Malaysian materials were offered at $1150/ton while South Korean ABS was reported at $1160/ton. A trader operating in Vietnam commented, “ABS prices moved higher on the back of firming styrene. However, buyers are still placing lower bids as they believe that the market will not post a real rebound before the Chinese New Year holidays. We hope to see better demand following the end of the holidays.” A source from a Malaysian producer stated, “We raised our offers due to higher styrene costs while demand was also not that poor this week. However, crude oil prices decreased further, which means that buyers will keep to the sidelines again and wait for additional reductions on ABS offers.”
Most players believe that the recent increases in ABS prices are not likely to prove sustainable in the near term as buyers are expected to remain on the sidelines before the Chinese New Year holidays as per usual. “We are not expecting to see any major changes in prices in the days ahead. Sellers may agree to give discounts on their offers if Asian styrene follows lower crude oil prices,” a player said. In feedstock news, spot ACN prices declined $30/ton on the week to be quoted at $1110/ton CFR China while spot butadiene prices were reported $10/ton higher at $765/ton with the same terms.