23 March 2009 04:56 [Source: ICIS news]
By Clive Ong
SINGAPORE (ICIS news)--Spot prices of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) resin surged last week and may continue to increase due to tight availability in key Chinese market and with suppliers seeking better margins, said producers and traders on Monday.
The 15% jump in feedstock styrene monomer (SM) values in just a month to the high $800/tonne (€592/tonne) CFR (cost and freight) ?xml:namespace>
This forced the manufacturers to sharply hike PS and ABS prices to obtain a workable margin.
Spot PS prices rose by some $50-80/tonne to around $1,000/tonne CFR China for general purpose (GP) PS and $1,100/tonne CFR China for high impact (HI) PS.
PS suppliers typically seek a $100/tonne spread for GPPS and a $200/tonne spread for HIPS over SM numbers.
Meanwhile, ABS numbers surged by more than $100/tonne to reach $1,300/tonne CFR China and above which surprised most buyers.
PS and ABS prices reached their highest level this year, according to global market intelligence service ICIS pricing.
“Higher prices were inevitable as cost had increased continuously in recent weeks,” said a producer in
Apart from cost push, tight availability of resins in
“Availability is tight for PS and even more limited for ABS, therefore prices are likely to continue to escalate,’ said a trader in
Supply of Korean ABS resins had been limited in
Korean electronics makers had increased their consumption of ABS resins to manufacture and export the finished consumer electronic products, they said.
Exports of Korean-made electronics products had been boosted by the depreciation of the Korean won against the US dollar.
Improved domestic demand in
“Prices are likely to gain further ground over the next few weeks as the tight supply is unlikely to ease quickly,” said a trader in eastern
Major sellers of PS and ABS into
($1 = €0.74)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections