Asian ABS raw material costs rise, quotes will increase
The Asian ABS market is facing downward pressure, with increased inventories of traders and suppliers, but quotations are still pushed up due to rising raw material costs.
ABS CFR quotes this week are 1580 - 1670 US dollars / ton, about 20 US dollars higher than last week.
As the key raw material styrene monomer industry ushered in a profitable season in March, the supply of styrene monomer is expected to tighten in the second quarter, prompting downstream ABS producers to increase resin prices to maintain profit margins.
A Chinese trader said: “The supply of styrene monomer is expected to tighten, so ABS suppliers have indicated that the offer will increase.”
At the same time, ongoing trade negotiations between China and the United States have made market participants cautious, although both sides have recently said that the negotiations are progressing well.
Most participants in the ABS industry chose to wait for specific information about a trade dispute to be resolved before the offer. After all, the United States has proposed tariffs on Chinese-made electrical appliances, which contain a large amount of ABS material.
Due to the CN-US trade war, the trade prospects are uncertain.
ABS resins are used in the home appliance, toy, consumer electronics, and automotive and construction industries.
At the same time, the new economic stimulus measures announced by the Chinese government seem to cheer the market.
The value-added tax on China's manufacturing industry will fall from the current 16% to 13%, and the government will set the growth rate in 2019 to 6.0-6.5%, lower than the actual GDP growth rate of 6.6% last year.