Asia ABS at record high of $1,850/tonne

08 May 2008 04:55  [Source: ICIS news]

SINGAPORE (ICIS news)--Spot prices of acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) resins reached a record 13-year high of $1,850/tonne this week, bolstered by firm feedstock values, said sellers and traders on Thursday.

ABS prices were assessed on a CFR (cost and freight) China this week with SAN numbers at a near parity, traders in eastern China said.

This level represented a 13-year high according to price data from global chemical market intelligence service ICIS pricing.

Offers were quoted as high as $1,900-1,930/tonne, with sellers targeting higher values in a bid to improve margins.

With feedstock styrene monomer (SM) above $1,500/tonne CFR China, acrylonitirle (ACN) above $2,000/tonne CFR northeast (NE) Asia and butadiene at around $1,900/tonne CFR NE Asia, margins of ABS are squeezed even at current prices, said Chinese sellers.

Some traders, however, believed that current high prices would further dampen demand for the resin and push end-users to seek cheaper alternatives.

Major ABS producers in northeast Asia include Chimei Corp and Formosa Chemical & Fibre Corp of Taiwan and LG Chemical, Cheil Samsung Industries and Kumho Petrochemical of South Korea.

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By: Clive Ong
+65 6780 4359

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