ABS and PS prices plummet again on deteriorating demand and falling feedstock values

23-Oct-08

Hushed demand from Asia - particularly China, and persistently falling input costs have brought down prices of ABS and PS in Asia. Though sellers from South Korea and Taiwan have quoted CFR China offers for ABS at US$1700/MT, it is believed that they are willing to settle deals fifty dollar lower from 'sporadic and hard to find' Chinese buyers. Styrene monomer and downstream Polystyrene prices continue to free fall in Asia. Though stockpiles with PS users have ebbed to low levels, and a need to replenish inventories becomes indispensable, very few deals have been heard concluded. Weak demand continues from buyers in Asia, particularly China as they appear uncertain about the future direction that input as well as user markets will take. Meanwhile, in a bid to counter deteriorating demand, South Korea's Cheil has announced total closure of its 450,000 tpa Yeosu ABS plant, and LG Chem has reduced capacity by 60% at its Yeosu 560,000 tpa ABS plant. Sinopec's PS plant switched production and has maintained operating rates at 75-80%.