11 September 2012 09:00 [Source: ICIS news]
SINGAPORE (ICIS)--Asian acrylonitrile-butadiene-styrene (ABS) offers have declined week on week as suppliers are grappling with weakening demand, despite the increase in feedstock prices that has resulted in squeezed margins for resin producers, according to market sources.
“Offers of ABS from major suppliers are down by up to $50/tonne (€39/tonne) at $1,900-1,950/tonne CFR (cost & freight) northeast Asia this week,” said an ABS trader in ?xml:namespace>
This was in the face of rising feedstock prices where key raw material styrene monomer (SM) prices went above $1,500/tonne CFR China this week. Other feedstock acrylonitrile (ACN) prices were firm at above $1,900/tonne
“With feedstock prices firming, it is quite surprising to see suppliers reducing ABS offers, but then demand is weak,” said a trader in
There was limited pick-up in demand for ABS in the third quarter despite it being the traditional manufacturing season for exports. The weak US and eurozone economies have curbed demand for Asian finished goods, while the poor performance of Asian economies, including that of
The average operating rates of ABS plants in
“Poor exports of finished goods out of
Spot ABS prices in
After touching $2,000/tonne CFR NE Asia in July, prices reached an impasse in August as demand failed to pick up significantly. Subsequently, prices came under downward pressure in August as traders started to liquidate stocks in view of the uncertain demand in
ABS is a resin used in the manufacturing of toys, appliances, office equipment and consumer electronics as well as in the automotive and construction sectors.
($1 = €0.78)
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