Rising cost of feedstocks is expected to push up acrylonitrile-butadiene-styrene prices in Asia, producers and traders said this week.
The price of ABS, a polymer used in various sectors, including automobiles, toys and electrical consumer products, depends on its three component feedstocks -- acrylonitrile (25%), butadiene (15%) and styrene monomer (60%).
All three feedstocks are on an upward trend at present with turnarounds scheduled for a number of plants later this year even as demand rises after the Lunar New Year holidays in China and elsewhere in Asia.
This week butadiene was said to have traded at $3,550/mt FOB Korea for March-loading cargoes, likely to be priced about $3,630/mt CFR China, after adding freight of about $80/mt. Based on the last assessed price of $3,000/mt CFR China on January 27, the price is set to increase by more than $600/mt.
Meanwhile, several Asian ABS producers expressed concern over the jump in butadiene prices this week. The only firm offer this week is from Taiwan's Chi Mei at $2,100/mt, CFR China, up $50/mt from its previous offer. Other producers are expected to follow suit, market sources said.
ABS was last assessed by Platts on January 25 at $2,020/mt CFR China.
But traders in Hong Kong said any rise in prices would be unlikely to attract buyers.
"The price is rather high, it is not workable right now [as there are] still some cheaper cargoes around. It will take around two weeks before the cheaper material is consumed and [end-users] can accept the new price," a trader said, adding that retail prices for ABS in Hong Kong are around $2,000-2,080/mt this week.
ACN was last assessed on January 31 at $2,020/mt CFR Far East Asia, up $40/mt week on week, while SM was assessed at $1,420.50/mt CFR China, down $1.50/mt week on week.
