03 August 2011 09:25 [Source: ICIS news]
SINGAPORE (ICIS)--Prices of acrylonitrile-butadiene-styrene (ABS) and styrene acrylonitrile (copolymer) (SAN) trended higher on the back of elevated feedstock styrene monomer (SM) prices, said traders and producers on Wednesday.
SM prices surged to $1,600/tonne (€1,120/tonne) CFR (cost & freight) China on 1 August, prompting ABS and SAN sellers to raise their resin prices.
The trading of ABS and SAN were concluded at around $2,270/tonne CFR China and $2,070/tonne CFR China this week, up by some $20-40/tonne from last week.
“Sales have been finalised at higher prices this week with a modest pick-up in demand,” said a trader in Hong Kong.
With the Chinese manufacturing season for exports ongoing, demand for resins such as ABS and SAN is expected to improve. However, the weak economic conditions in the eurozone and the US are fuelling concerns that demand for China-made products could be dampened.
“Demand for ABS this year is lagging behind last year at this point in time,” said a Taiwanese manufacturer.
With prices on the upswing, a number of sellers were concerned that buying interest may decline as end-users were reluctant to accept the higher prices.
“Higher ABS prices might reduce demand, causing buyers to see other alternative resins, as they could not pass the high resin costs to end-products,” said a trader in east China.
ABS is used to make office equipment, consumer electronics, toys and automotives. SAN is used to make consumer items such as toothbrush holders, trays in refrigerators and fan blades.
($1 = €0.70)
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