ABS buyers step back as SM prices drop

12-Jun-07

Downstream SM market was sluggish amid lack of buying interest, prices softened by US$25-30/mt, causing many buyers to get cautious and step away from the ABS market Asian ABS offers remained stable last week, despite falling upstream SM and butadiene markets. Selling offers from S.Korean and Taiwanese producers were sustained at the level of US$1,710-1,750/mt CFR China on the back of relatively tight supply. ABS sellers seeking liquidity have responded to the reduced bid prices by lowering their offers, but many sellers view the current dip in buying as temporary.