Firmer styrene triggers ABS hikes before year ends
In Southeast Asia, ABS prices increased a bit on the low end of the price range owing to firmer styrene costs in Asia in the last week of 2015. Import ABS prices were quoted at $1140-1150/ton on a CIF SEA, cash equivalent basis, with the previous week’s low end disappearing from the market in line with a recent increase in spot styrene prices on an FOB South Korea basis. However, players reported that demand remained weak, especially in the region’s local markets as most buyers traditionally refrain from building fresh stocks ahead of the Chinese New Year holidays. A trader active in Vietnam reported offering Taiwanese ABS at $1140/ton CIF, cash and South Korean ABS at $1150/ton with the same terms. He commented, “Demand remains weak in the domestic market due to the approaching Chinese New Year holidays as no one is willing to replenish. We believe that prices will begin to move higher following the end of the holidays in mid-February. Hence, we may secure some cargoes while prices remain at attractive levels.”