21 April 2009 09:50 [Source: ICIS news]
SINGAPORE (ICIS news)--Spot prices of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) resins have been falling this week as sellers were trying to liquidate stocks ahead of the Chinese Labour Day holidays in early May, traders said on Tuesday.
Spot values slipped below $1,100/tonne (€847/tonne) CFR (cost and freight) China after reaching $1,150/tonne CFR China in early April. ABS prices dropped below $1,450/tonne CFR China after reaching $1,500/tonne CFR China two weeks ago.
The strong domestic demand in China since February, fuelled largely by government stimulus and easy credit policy, had pushed up the prices.
In April PS prices rose 62% from its December lows while ABS gained about 44% from its January bottom, according to price data from global market intelligence service ICIS pricing.
However, prices have started to ease as market players expect weak demand after holidays in May.
"Looking ahead, prices of resins are likely to fluctuate in tandem with the performance of the Chinese export sector from June to September, which is the traditional peak manufacturing season for exports," a trader in east China said.
($1 = €0.77)
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