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Import ABS offers to Vietnam this week appear to be softer with prices above the $2000/ton threshold are barely repeated. Both South Korean and Taiwanese offers are ranging at $1980-2000/ton CIF Vietnam, LC AS term. Players attributed the softened prices to the fact that upstream styrene monomer costs are decreasing.

Styrene costs based on FOB South Korea term fell approximate $75/ton from the cyclical peak recorded on 12 December 2017, to $1243/ton on 26 December. However, the downtrend might not be long, sources said given the satisfactory buying interest in the nearby China market.

Buyers however are not very confident in committing to fresh replenishment at the moment citing that import offers are too high in spite of having very low inventory on hand. “We might discuss with suppliers to obtain additional discount before concluding a small deal,” a buyer said.

Amid the lack of confidence in accepting the current offers, buyers are not expecting to see any large reduction in ABS market in the immediate term with the support from butadiene costs. Butadiene prices based on FOB South Korea term has been holding steady at $1100/ton for nearly two weeks now with very little indication of a down trend as synthetic rubber sector remains strong in recent month.