Will ABS tightness cushion impact of retreating costs in Europe?
A manufacturer from Italy commented, “Our suppliers are not open to negotiate their levels as the lack of imports from Asia exacerbated the prevailing tightness. Furthermore, import prices from Asia stand above the local range. As for April-May, we heard talks of price stabilization; however, we hope for a price relief instead, considering that ABS prices reached all time highs.”
“Our European suppliers mostly anticipate a mostly stable trend for April, citing dwindling ABS supplies. Even if we hope that downward pressure from decreasing spot styrene and butadiene costs will be felt on ABS prices, supply-demand fundamentals will play a more important role in determining the future trend,” opined a different buyer.
According to many, the ABS market is likely to follow a stable trend with decreasing feedstock costs on one hand and tight supplies on the other hand. The downward pressure will be more visible only if supply eases and upstream markets continue to retreat. Players are also wondering if the record high levels will attract import cargoes in April from Asia, where ABS prices are now falling.
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