22 August 2012 05:52 [Source: ICIS news]
Firm energy futures and relatively strong performance in the feedstock styrene monomer (SM) sector prompted PS and ABS makers to target higher prices. Energy futures and SM prices were at around $97/bbl (€78/bbl) and $1,450/tonne CFR (cost & freight) ?xml:namespace>
However, poor offtake rate of buyers in recent weeks had derailed suppliers’ price hike initiatives. In fact, traders who were liquidating stocks in view of poor demand caused prices to ease in the ABS market.
ABS prices reached $2,000/tonne CFR northeast
“The demand for resins is weak even though it is currently the manufacturing season,” said a trader in
“Factories have fewer orders this year and coupled with the slowing economic growth in
The average operating rate of PS and ABS facilities hovered at 55-65% capacity in August, which is relatively low given the current manufacturing peak.
A number of suppliers expressed little optimism for any significant improvement as the global economic conditions continued to weaken.
“There are little signs of improvement in demand. Given the current economic backdrop, it is not surprising,” said a Taiwanese resins producer.
ABS is used in the manufacturing of consumer electronics, appliances, office equipment as well as in the automotive and construction sectors. PS is used in the packaging, toys and appliance sectors.
($1 = €0.80)
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