15 November 2013 09:59 [Source: ICB]
Demand expected to remain weak through the end of the year as finished goods production is largely complete
Spot acrylonitrile-butadiene-styrene (ABS) prices in Asia appeared to have stabilised after a sell-off, but weak demand may continue to weigh on the market for the rest of the year, industry sources said on 7 November.
A supplier was seen offloading material at a massive discount the week ended 1 November in an attempt to clear its October stocks, selling ABS at around $1,820-1,830/tonne CFR (cost and freight) China, prompting other sellers to follow suit, market sources said.
“Prices have come off sharply since last week, with sellers quoting below $1,900/tonne,” a Taiwanese supplier said.
The week ended 8 November, however, lower priced parcels have been concluded, with spot prices hovering in the mid- to high- $1,800/tonne levels CFR China as parcels in the low-$1,800/tonne CFR China levels became limited, market sources said.
Weak demand is expected to stay for the remainder of the year, as production of finished goods for exports has mostly been completed, market players said.
ABS is a resin with applications in toys, electronics, appliances, as well as in the automotive and construction sectors.
“Perhaps some buying interest will re-surface in late December as end-users usually stock up resins ahead of the Lunar New Year,” said a trader in China.
The Lunar New Year falls on 31 January 2014.
The week ended 1 November, SM prices were hovering at around $1,650/tonne CFR China, while ACN and BD prices stood at around $1,850/tonne CFR NE Asia and $1,700/tonne CFR NE Asia, respectively.
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