The down market for ABS in china has gained speed in Chinese polymer industry. The cause for this rapid is considered to be the sharp decreases in the feedstock cost and constantly inactive demand for the polymer. The prices have shown a larger decrease in the last week, and then the prices have touched the lowest prices in the local and import markets. According to ChemOrbis, since 2012, when it started keeping a track of the polymer prices, this have been the lowest prices touched by Acrylonitrile Butadiene Styrene (ABS).
Despite of the fact that the prices of the polymer firmed up by a significant amount of 45 USD per ton last week due to the volatility of the crude oil, the FOB South Korea indicates has been representing a decrease of price around 185 USD per ton as compared to the start of the month. Along with ABS, ACN and butadiene have also lost the grounds in the last week.
As quoted by an agent of Taiwanese producer, the demand for the polymer have been very weak due to diminishing feedstock costs have been pushing the buyers to the sidelines. However, the sellers expect an increase in demand of the polymer in coming month. Sellers have been adopting several ways to attract buyers such as discounts etc. but the trading activities for the styrene remain to be slow. Most investors are trying to keep the inventories low as per the low demand and further anticipation of a decrease in the prices.