Limited supply, higher styrene push ABS prices up in Asia
A trader based in Hong Kong offering Taiwanese ABS at $1800/ton CIF opined, “Offer levels for ABS are increasing due to short supply from Taiwanese producers. We have revised our offers up by $100/ton within the past two weeks.”
A Chinese distributor of a Taiwanese producer also reported, “Our Taiwanese supplier and a Chinese producer have low supplies for ABS. We also heard that the Chinese producer is facing some transportation issues during deliveries as well. Therefore, materials are not ample in the market and prices are high this week, which causes players to hurry to make purchases. We think prices are likely to remain high due to supply issues.”
Another Chinese trader offering Taiwanese and Korean ABS commented, “Traders have concerns about securing cargoes while end-users are worried as well given limited supply from major producers. ABS prices are also following up high styrene prices.”
A Malaysian trader noted, “Our Taiwanese supplier informed us that they will increase their PS and ABS offers next week. Therefore, we are planning to buy some materials as our inventory is quiet low.”
An Indonesian trader reported that offers of their South Korean supplier remained stable from last week at $1610-1620/ton from last week despite weaker butadiene costs. The trader attributed this to stronger styrene prices.
In Asia, FOB Korea based spot styrene prices are currently up by more than $50/ton from the beginning of June.
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