ABS prices firm up in China on tightening supply
According to ChemOrbis Price Index, import ABS prices rose by around $22/ton on average since early June. The overall import range was reported at $1250-1370/ton CIF China/Hong Kong, cash.
A Korean producer who offers on the low end of the range said, “Demand remains weak due to the off season for both ABS and PS and we are willing to give some discounts to the buyers in order to conclude some deals. We believe that the upcoming G20 Summit and maintenance season during August will cause limited supply for PS and ABS and we prefer to take a wait and see stance for now.”
A trader also reported concluding deals for Taiwanese origins at $1320-1370/ton on CIF China/Hong Kong, cash equivalent basis, adding that they raised their ABS offers by $30/ton from a week earlier.
Similarly, the local market witnessed some increases and moved up to CNY10200-11400/ton ($1323-1479/ton excluding VAT).
A trader based in China informed that players were previously focused on clearing their inventories, but buyers have recently returned to the market to replenish stocks because of concerns of a possible supply tightness due to the upcoming G20 Summit. He attributed recent increases in ABS prices to the improving demand. The trader stated, “We also started replenishing material as we believe prices will firm up over the near term.”
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