FocusAsian styrenics decline on poor demand

11 September 2008 08:32  [Source: ICIS news]

By Clive Ong

 

SINGAPORE (ICIS news) – Spot prices of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) resins remained on the downtrend amid persistently poor demand in the key Chinese market, suppliers and traders said on Thursday.

 

Spot PS prices fell to around $1,600/tonne (€1,136/tonne) CFR (cost and freight) China in first half September, down from $1,750-1,780/tonne CFR in first half July according to global chemical market intelligence service ICIS pricing.

 

Meanwhile ABS values tumbled to around $2,050/tonne CFR NE Asia, down from $2,180-2,220/tonne CFR NE Asia to over the same time period.

 

Demand for styrenic resins started to wane at the beginning of the third quarter, which was contrary to previous years where the period was often the peak manufacturing season.

 

The slow demand in July and August was attributed to the transport and production restrictions across China due the Beijing Olympic Games.

 

A number of suppliers were optimistic that demand would rebound post-Olympics in September; however, market activities remained sedate.

 

‘Factories in southern China continue to have limited orders for finished goods and hence demand for PS and ABS stays weak,’ said a trader based in Hong Kong.

 

‘The financial woes in the US and Europe have reduced demand for Chinese imports while the Chinese economy itself is starting to slow,’ added another Hong Kong based trader.   

 

With the approach of the week-long Chinese National Day holidays in early October, some sellers anticipated a further slowdown in demand for the remainder of September.

 

‘However, demand could revive after the lull, as inventories among end-users are low,’ said a NE Asian resin producer.

 

Buying momentum had been slow since July and a number of suppliers expected buyers to replenish stocks post the October 1 holidays.

 

Major styrenic resins manufacturer in NE Asia includes, Chimei Corp, Formosa Fibre and Chemical Corp, Taita Chemical, LG Chem, Cheil Samsung and Kumho Petrochemical.

 

($1 = €0.71)

 

For more on PS and ABS visit ICIS chemical intelligence

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By: Clive Ong
+65 6780 4359

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