A South Korean producer informed SSESSMENTS.COM that their June shipment allocation for ABS Injection to China has been sold out since early May. For July shipment, the producer has yet to announce the offers. The producer mentioned that on Monday, May 18, the Korean leaders were afraid that the price of high-impact ABS will soar high, the same way as the melt-blown fabric earlier. After China government announced the “One Head, One Helmet” movement, helmet demand is massive. Thus, to control increment in prices, the authorities let the sellers sold all of their June shipment allocations at once and raise the prices for July shipment once.
More added to SSESSMENTS.COM, the producer personally believes that the uptrend in the PS and ABS market will not be sustainable since helmets are durable products unlike single-use mask, it is not easy for raw materials prices increased sharply. Moreover, helmet production does not need a specific type of materials and lower technical content. As long as the raw material is durable, high-impact, high strength and lightweight, the raw materials can be replaced by any other materials. When raw materials competitions are greater, the increment won’t be too high. Helmet usage is also relying on policy guidance, if there are no continuous remediation initiatives, the demand for helmets will quickly back to normal.
For the outlook, the producer opined that the PS and ABS market will be stable in the near term. The producer said to SSESSMENTS.COM that the continuous increases in crude oil prices, stronger SM prices, coupled with improvement in demand in both local and export markets, particularly for small home appliances, will support the current firm PS and ABS prices.
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Tags: Asia Pacific,English,NEA,News,Styrenics
Published on May 22, 2020 7:29 PM (GMT+8)Last Updated on May 22, 2020 7:29 PM (GMT+8)
