Asia ABS price rise reined in by decline in butadiene

07 March 2012 05:47  [Source: ICIS news]

SINGAPORE (ICIS)--Asian acrylonitrile-butadiene-styrene producers hopes of increasing resin prices have been dented by the decline of feedstock butadiene (BD) to below $3,500/tonne (€2,660/tonne) this week, traders said on Wednesday.

BD buying indications this week fell to $3,350-3,400/tonne CFR (cost and freight) northeast (NE) Asia against offers hovering at around $3,500/tonne CFR NE Asia, traders said.

Producers of ABS had raised offers last week with some quoting at elevated levels of $2,250-2,300/tonne CFR China.

However, buying interest was lacklustre as buyers adopted a wait-and-see stance, in view of the weakness in BD values.

“ABS buyers are struggling with prices even at $2,150/tonne this week as sentiment has taken a hit,” said a resins distributor in south China.

Buyers are becoming even more hesitant as lower offers started to emerge from some traders.

“Some offers from dealers have come below $2,150/tonne and buyers are now thinking of even lower prices,” said a trader in Hong Kong.

A number of suppliers have yet to revise offers this week given the volatile feedstock BD prices.

“New offers will probably be out in the later part of this week as producers are grappling with the sharp down draft in BD prices," said another trader in Hong Kong.

Major ABS suppliers to China include Chimei Corp and Formosa Chemical & Fibre Corp of Taiwan and LG Chem, Kumho Petrochemical and Cheil Samsung Co of Korea.

ABS is a resin used in the manufacturing of toys, consumer electronics, office equipment and automobiles.

($1 = €0.76)

By: Clive Ong
+65 6780 4359

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