30 November 2010 09:13 [Source: ICIS news]
By Clive Ong
Manufacturing activities in
ABS spot prices slipped to $2,200 tonne/year (€1,672/tonne) CFR (cost and freight) NE (northeast)
Until this week, ABS had been on an uptrend since July, according to ICIS data.
ABS is used in the office equipment, personal computers, consumer electronics and automotive sectors, while SAN is a transparent resin used in consumable items like disposable cigarette lighters, toothbrush holders and fan blades.
“Offers have declined but buyers still refused to commit,” said a Hong Kong-based trader.
“Buyers decided to wait and see, expecting prices to fall further during the current lull season,” said another trader in
Some were buying in small quantities to tide them over urgen requirements, bent on shaving the current strong margins that ABS and SAN producers currently enjoy.
“Margins are indeed very good at this point in time, in fact much higher than the average over the past few years,” said an ABS producer.
With key feedstock styrene monomer (SM) values hovering at around $1,250/tonne CFR China, the current spread between ABS and SM is around $950/tonne, more than double the typical difference of $300-400/tonne, market sources said.
Some buying interests could emerge in December as end-users with limited stocks on hand may take advantage of the lower prices to build up inventory.
($1 = €0.76)
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