Asian ABS suppliers aim for August hikes in Turkey
Looking at new price ranges, South Korean offers are at $1380-1390/ton for ABS natural, at $1530-1650/ton for white and $1490-1500/ton for black grade, all CIF Turkey, cash no duty. Meanwhile, a Taiwanese ABS producer’s offers were reported at $1435/ton for ABS natural and $1585/ton for ABS white, CIF, subject to 6.5% customs duty, cash.
“We received around $50/ton increases from South Korean producers. However, we will push for discounts as we are not that eager to replace much stocks considering demand conditions,” traders concurred. A seller expects to pay $30/ton increases instead of $50/ton for his restricted purchases. “Our supplier is unwilling to compromise much claiming that they have to support supply in China amidst limitations there,” he highlighted.
Whether hike targets for August will be materialized or not remains as a question mark. Weaker energy costs coupled with lower styrene and butadiene prices in Asia support soft expectations. Nonetheless, expectations of supply limitations ahead of the upcoming G20 Summit in China and the maintenance season for styrene in September may limit decrease amounts, according to some players.
In upstream, spot styrene prices edged down on FOB Korea basis week over week, while butadiene costs plunged $50/ton with the same terms. Meanwhile, spot ACN costs soared $40/ton in the period on CFR Far East Asia basis.
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