Asian ABS markets continue downward trend on subdued demand

In the past month, ABS inj. prices on CIF SEA/China basis have lost around 4.5% according to the weekly average data from ChemOrbis Price Index.

The overall range for import ABS inj. prices in China was $10-20/ton lower on the week at $1310-1400/ton CIF while prices in Southeast Asia were steady to $20/ton softer at $1330-1430/ton CIF, cash basis.

Asian suppliers maintain soft pricing

Several Northeast Asian and Southeast Asian producers have approached regional ABS markets with additional weekly drops of $20-40/ton this week.

The main reason behind suppliers’ softer pricing was cited as the bearish buying sentiment across the region amid growing concerns over COVID-19. Thin demand has also pushed producers to cut their operating rates in order to combat mounting inventory pressure.

Spot styrene on FOB Korea basis up from 11-year low

According to ChemOrbis Price Wizard, spot styrene prices on FOB Korea basis has recently gained $28/ton on the week, rebounding from its lowest levels not seen since late February 2009.

This was partially attributed to rising demand from downstream factories in South Korea as some downstream units including styrene at South Korean producer Lotte Chemical’s Daesan plant was shut following the fire at its naphtha cracker. The duration of the shutdown and the impact on the downstream markets across Asia have remained unclear so far.

ABS prices have been unresponsive to this recent rebound so far this week, market sources reported.

Eyes on oil movements after OPEC meeting

Initial reports revealed that The Organization of the Petroleum Exporting Countries (OPEC) has reached an agreement to cut oil production after a 2-day meeting in Vienna, Austria on March 4-5.

The decision came in order to neutralize the lower oil prices and cushion the effects of the virus that weighed heavily on crude oil futures for the past 2 months.

Players operating in the polymer markets are now closely monitoring the route of the energy markets after the meeting.