27 August 2012 08:40 [Source: ICIS news]
By Clive Ong
Spot prices edged up towards $2,000/tonne (€1,600/tonne) CFR (cost & freight)
Assessed prices increased by an average of $10/tonne week on week to $1,930-1,990/tonne CFR NE Asia, according to ICIS.
“Prices could see further upside in the near term as crude oil and SM prices seem likely to stay firm,” said a southeast Asian producer.
Acrylonitrile (ACN), another ABS feedstock, similarly strengthened to $1,900/tonne CFR NE Asia last week, market sources said.
These provide ABS suppliers the impetus to maintain or quote higher offers, although butadiene (BD) – which makes up less than 20% of ABS – fell $50/tonne week on week to $1,850/tonne CFR NE Asia in the week ended 24 August.
A number of leading ABS producers have maintained offers at $2,000-2,050/tonne CFR NE Asia, but spot trades were much lower at $1,920-1,980/tonne CFR NE Asia in early to mid-August.
“The lower-priced parcels from traders are beginning to sell out, so prices [have] started to move higher towards producers’ offers,” said a trader in
Actual ABS demand, on the other hand, is not expected to significantly improve in spite of the seasonal pick-up in
Manufacturing activities for exports usually spike in July to September.
Poor economic conditions in the
ABS is a hard plastic used in the manufacturing of office equipment, appliances, consumer electronics, as well as in the automotive and construction sectors.
($1 = €0.80)
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