27 October 2005 04:40 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian acrylonitrile butadiene styrene (ABS) offers fell by $30/tonne this week to $1,470-1,500/tonne CFR China on the back of the continued price decline in feedstock styrene monomer (SM) values, traders said on Thursday.
"Weak Chinese demand and falling SM prices have prompted some ABS producers to reduce their offers," said a Hong Kong-based trader.
SM prices dipped below $ 1,000/tonne FOB Korea this week, down about $50/tonne from the previous week. SM prices had held firm at $1,120-1,140/tonne CFR China in September, but started to weaken in October.
Apart from the falling upstream SM costs, low demand in China also dampened market sentiment.
"The toy market is very weak this year and demand for ABS has slowed down as a result. Dealers in Hong Kong are not stocking up any more ABS as end-users such as moulders in China have stopped their purchases, given the continuous fall in SM values," said the trader.
"Some customers who earlier placed orders are now considering delaying the delivery, and some have considered cancelling the orders. We do not anticipate ABS demand to pick up for the rest of the year," he added.
ABS is used in a wide array of products such as toys, household appliances, and car components and parts.
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