Hike in import ABS to Vietnam faces stiff resistance

International suppliers once again implemented sharp increment in import ABS offers to Vietnam claiming limited supply and surging upstream styrene monomers costs. Some cargoes spotted at $90/ton higher week on week, just yet buyers are not showing great interest fearing the sustainability of the current trend.

South Korean ABS offered at $1930/ton CIF Vietnam, LC AS term, a $90/ton up from last week. A buyer commented, “Prices are too high while market in Southeast Asia is so lack of support from both upstream and demand. We prefer to wait on the sideline to monitor further development.”

Styrene monomer cost based on FOB South Korea term surged during early November due to year-end replenishment activities in China. Compared to late October, styrene prices jumped approximate $75/ton last week, generating a positive wave on the downstream market sentiment. However, styrene market loses steam this week on weaker buying interest in China.

Another buyer reported a $30/ton increased on Taiwanese ABS added, “We were hoping to obtain prices below the $1800/ton threshold and in contrast, market firmed up too quickly. Upstream markets including styrene and ACN are softening, therefore it makes more sense to hold purchases for now.”

Import ABS offers to Vietnam currently stand at $1930-1960/ton, all based on CIF, LC AS term.