Import ABS to Vietnam continue to soften

Vietnamese players this week reported receiving fresh ABS offers from couple of major Fareast Asian producers with reduction from last week, which players attributed to continuous falling styrene monomers and butadiene costs.

In fact, week on week basis, ABS originated South Korea and Taiwan has slipped about $70/ton to reach $1810-1830/ton CIF Vietnam, LC AS term. A buyer received the offers commented, “We think market still has room to reduce further as actual prices are much higher than theoretical costs at the current feedstock costs. Therefore, we prefer to hold wait and see stance.”

Meanwhile, a trader sold Taiwanese ABS at $1830/ton CIF Vietnam added, “Buyers are complaining that the rate of ABS price reduction is too small compared to butadiene’s. We only managed to conclude a small deal to regular customers at this level.”

Butadiene cost based on FOB Korea term has plunged about $1200/ton since earlier this month and there is still room for further reduction, players said, as demand from downstream markets fade while supply is improving. As a result, buyers in the ABS market are very cautious about making fresh replenishment, concerning that further discount would become available in the near term.