Asian producers continue to lower PS, ABS offers to China, SEA
Falling upstream markets were cited as the reason behind these consecutive decreases since spot styrene prices on FOB Korea basis are nowadays down by more than $200/ton from early March while spot butadiene prices on CFR China basis moved below the $2000/ton threshold for the first time since mid-December 2016, posting a cumulative decrease of $1050/ton from early March.
A few Chinese traders reported that a Taiwanese producer cut its offers by $70/ton for PS and by $80/ton for ABS from their latest levels. Accordingly, the producer’s new offers are standing at $1290/ton for GPPS injection, at $1350/ton for HIPS injection and at $1780/ton for ABS injection, all on a CIF China/Hong Kong, cash basis.
An Indonesian trader, receiving offers from a South Korean producer, also reported that their supplier applied three digit drops of $160-180/ton for GPPS and $100-120/ton for HIPS while decreasing ABS for 60$/ton when compared to last week. Based on this adjustment, the producer now offers GPPS injection at $1370/ton, HIPS injection at $1510/ton, and ABS injection at $1810/ton, all on CIF Indonesia, cash basis.
The trader commented, “Despite recent reductions, we still find our supplier’s ABS offer at $1810/ton too high as we believe that ABS offers below $1800/ton CIF should be available based on significantly lower butadiene prices. We think that the maintenance season for styrene fails to prevent prices from falling as demand remains weak with Chinese players restraining their purchases.”
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