Asian ABS: CFR China stays flat amid stable fundamentals.
Participant wait until China’s return.
Cargo shortage persists in Southeast.
Petrotahlil - Asian acrylonitrile-butadiene-styrene was assessed stable to firmer week on week, amid holidays in the key China market.
CFR China remained unchanged at $1,680/mt and CFR Southeast Asia moved up $20/mt on the week to be assessed at $1,670/mt.
Trading has been thin since the first day of the Golden Week holidays on Oct. 1, while many participants retreated to the sidelines, awaiting the return of participants in China.
“There is nothing new in the market,” a producer said.
Despite the holidays, downstream producers were maintaining their run rates on good demand from consumer electronics, with average operating rates heard to be around 90% in China.
While supply was still limited at major ABS producers, tightness had eased slightly as compared to the situation in August and September, as suppliers were able to allocate more cargoes to the spot market recently, a market source said.
Outside China, there was a shortage of ABS in Southeast Asian countries like Indonesia.
Market participants expected a delay in cargo deliveries due to overwhelming orders received by producers from the China market.
In feedstock markets, Asian ACN stayed flat on the week at $1,235/mt CFR Far East Asia on Oct. 6, while Asian styrene inched up 50 cents/mt on the week to be assessed at $678/mt CFR China on Oct. 7.
Based on raw material prices, the ABS production margin was calculated at $564.45/mt on Oct. 7, edging down 25 cents/mt on the week, according to Platts data.
Platts Asian ABS Weekly rationale
Acrylonitrile-butadiene-styrene was assessed unchanged on the week at $1,680/mt CFR China on Oct. 7, based on tradable indications heard at $1,675-$1,685/mt CFR China.
CFR Southeast Asia was assessed up $20/mt on the week at $1,670/mt, based on tradable indications heard at $1,650-$1,700/mt CFR SEA, and below selling indications heard at $1,700/mt CFR SEA.
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