Asian styrenics dragged on feedstock decline

09 October 2008 05:27  [Source: ICIS news]

SINGAPORE (ICIS news)--Polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) resin prices fell sharply this week, dragged down by the steep declines in feedstock styrene monomer (SM) values, producers and traders said on Thursday.

 

Spot SM numbers had plummeted to lows of $1,110/tonne FOB (free on board) Korea this week, marking a more than $200/tonne drop from $$1,330-1,345/tonne FOB Korea just before the Chinese National Day holidays.

 

Consequently, PS and ABS prices fell sharply this week.

 

Sales of general-purpose (GP) PS were concluded at $1,400/tonne CFR (cost and freight) China, down $100/tonne from previous transactions.

 

ABS sales were reported around $1,900/tonne CFR China and below, a decline of more than $50/tonne from previous fixtures.

 

‘PS prices are likely to fall further as SM values had really plummeted,’ said a NE Asian producer.

 

The sharp drop in SM values had eroded the margins of PS manufacturers as feedstock were purchased at higher levels previously.

 

‘The ABS market is weak as buyers are expecting lower prices and therefore not willing to make large volume purchases,’ said a resin trader in Hong Kong.

 

The rapid downward spiral in SM values cast a web of uncertainty in the market. Most ABS and PS manufacturers had not made any offers this week, citing feedstock volatility as the key reason.

 

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By: Clive Ong
+65 6780 4359

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