Korean makers stepped back on ABS offers to Vietnam on sluggish demand

It is reported that a major South Korean producer has announced fresh weekly ABS offers to Vietnam with $40/ton reduction from last week, to $1890/ton CIF Vietnam, LC AS term. Persistent sluggish demand condition is regarded as the primary driver for the decision with buyers looking at possible further price cut in the near term.

A buyer commented, “We are running low on inventories, yet current offers are still above our acceptance levels. We might wait for a little longer given the softness in the upstream butadiene and ACN markets.”

Buyers are speculating a possibility that suppliers might need to reduce inventories ahead of the year-end financial closing, which opens pathway for discounts to emerge. “At the same time, we do not see a significant drop. Styrene monomer supply is tight and would provide some support in the near term,” a trader said.