Sluggish activity pulls local ABS market down in Turkey

ABS natural injection offers have been on a steady to softening in Turkey’s distribution market since the middle of April. Slowing buying appetite amidst plentiful availability was blamed as the main driver weighing down the market, while more sellers were said to be willing to give discounts recently.

The locally-held ABS natural range was reported $50/ton lower on both ends at $1450-1500/ton ex-warehouse Turkey, cash not inc VAT in the prior week before the low end touched $1430/ton at the start of this week. This fresh low end has not yet been widely confirmed by secondary sources.

“ABS prices have decreased by around $50/ton. This is mostly due to the stronger US dollar and weak demand. In June, we believe that the market will witness drops of around $100/ton as demand will be slower amidst plentiful availability,” a distributor said.

Another distributor commented, “The ABS natural market is under pressure while specialty grades are not doing that bad amidst relatively limited availability. End users are concerned about the recent rise in the dollar and political issues in the country, which kept activity hindered.”

Meanwhile, some players argued, “The recent discounts started to cause traders to limit their replenishment activity and refrain from long distance cargos. At this rate, supply may tighten by July-August.”

According to ChemOrbis Price Index, local ABS natural prices have retreated by around $70/ton on a weekly average basis when compared with mid-April.