Petrotahlil - ABS injection prices in China maintained their upward trend for another week as suppliers applied visible hikes on their offers due to a combination of tight availability and robust demand.
The uptrend in spot butadiene prices also helped prices continue their climb. According to ChemOrbis Price Wizard, spot butadiene prices on CFR China basis have jumped 55% from late June to stand at $575/ton recently.
At the start of the week, major local producers raised their domestic offers by around CNY500/ton ($72/ton) as demand picked up amid replenishment activities.
This was soon followed by higher offers from Taiwanese, South Korean and Southeast Asian suppliers to the country.
The overall range for import ABS injection prices increased $50/ton from last week to be assessed at $1500-1570/ton CIF China cash basis. The weekly average of prices hit the highest level since May 2019, according to data from ChemOrbis Price Index.
Deals for Taiwanese and South Korean ABS were concluded at $1500-1530/ton on similar terms.
A source from a Northeast Asian producer commented, “We have applied a fresh round of increases on our ABS inj. offers to China this week as demand from the country has rebounded strongly amid low inventory levels on the buyers’ side. The ongoing gains in spot butadiene prices have also supported the market.”
According to players, demand has been particularly good from the home appliances sector in China.
A Southeast Asian producer who also lifted its offers by $50/ton to China from last week said, “Tight supplies and healthy demand in China continue to push ABS prices higher. Even demand towards toys is quite good now.”
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Source : ChemOrbis