Asian acrylonitrile-butadiene-styrene market hits year-to-date low of $1,850/mt

The Asian acrylonitrile-butadiene-styrene market his a year-to-date low Wednesday despite the peak season that usually falls between August and September.

"August and September is usually the period when buyers stock up their inventories to meet end-of-year demand, but this is not the case this year," a Taiwanese seller said. "Demand has been very weak during this period."
Asian spot prices for ABS, a polymer used to make consumer electronics, vehivles and toys, was last assessed at $1,850/mt CFR China Wednesday, the lowest assessment since beginning of the year, S&P Global Platts data showed.

Household electronics output in China showed stable to negative growth in July, with output for home refrigerators falling 7.3% year on year, washing machine output falling 3.6%, while air-conditioner output showed marginal growth of 0.5%, according to data from the National Bureau of Statistics of China.

While feedstock prices remained relatively firm, it means producers' margins are under pressure. After deducting feedstock and operating costs, ABS margins stood at $117.30/mt in the negative Wednesday.

Despite weaker downstream demand, upstream styrene monomer, one of the main feedstocks to produce ABS, has hovered around $1450/mt CFR China since mid-August due to production and supply tightness in Japan and China.

Apart from lowering offer prices, some ABS makers have reduced ABS operating rates due to weakening demand, according to sources. South Korea's Lotte Chemical, for example, has cut operating rates by 10-15% this month at its 670,000 mt/year plant at Yeosu, a source close to the company said.