ABS Price to Rise on Tightening Supply
From August 9, China’s ABS price started to rise. As of August 20, the mainstream offers for the Chinese-made ABS climbed to RMB 17,300-18,200/mt. The lowest offer increased by RMB 450/mt from August 6, and the highest offer increased by RMB 100/mt from August 6. The prices of some grades, which were in short supply, even increased by over RMB 700/mt. On contrast, the prices of international crude oil and styrene went down affected by the public health event during the same period. The low inventory, increasing unit maintenance and tightening supply contributed to the increase in the ABS price.
Due to the increasing unit maintenance in June and July, SCI’s ABS inventory index also dropped rapidly. As of August 19, the ABS inventory index was 58.75, down 19 from June 18 (77.75). Although a slight inventory building was seen at early August, the overall inventory stayed at a record low level. Meanwhile, the inventory started to decline from August 9 with improved sales and increasing orders. On the whole, the inventory index changed ahead of the price changes, playing an important role as an alarm and indicator for market changes.
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