Sharply falling Styrene Monomer values trigger reduction in Asian ABS and PS prices

03-Nov-08

Styrene Monomer prices in Asia have plummeted below US$550/MT FOB Korea on subdued demand, bringing down prices of derivatives PS and ABS. Falling butadiene prices at around US$1200/MT have also acted on ABS prices, tanking CFR China offers for ABS to US$1600/MT. As demand from China continues to be lackluster, deals were heard concluded about 30-40 dollars lower. November offers for polystyrene from South Korea and Taiwan also deteriorated in line with falling feedstock prices and downcast demand from China. After last week's successful conclusion of deals at around US$1100/MT, benchmark offers for GPPS have dipped, and HIPS offers have fallen to US$1200/MT. Despite lowered offers, buying continues to be damp as SM prices have dipped yet again, bringing down bids by about 100 dollars.