SE Asian buyers resist cost-driven ABS hikes

This week, several regional producers approached China’s local and import ABS markets with higher offers on the back of the rally of the energy complex as well as firmer styrene and benzene prices. However, the recent cost driven ABS hikes have met resistance in Southeast Asian market, where demand remains stagnant.

An Indonesian trader commented, “Although styrene prices are moving up in line with strong crude oil futures, ABS prices in Southeast Asia are yet rebound as visibly as the nearby Chinese market due to slow demand.”

A source from a Southeast Asian producer also said, “We raised our ABS offers to China by $20/ton from two weeks ago to $1920-1930 CIF while players in Southeast Asia are resisting the offers above the $1900/ton level.”

A manufacturer in Vietnam who received an offer for South Korean ABS noted, “Offers firmed up a bit this week. However, demand remains weak as buyers are on a wait and see stance while they are still holding inventories. We think prices will follow a stable to firmer trend in the near term.”