Market behaviour in China has urged a South Korean styrenics producer to revise prices. A South Korean producer revealed to SSESSMENTS.COM that the company’s offers dropped on a weekly comparison with HIPS Injection edging down by $10/ton, while ABS Injection dropped by $15/ton. Currently, HIPS Injection and ABS Injection offers from the producer are available at $1040-1,050/ton and $1,370/ton, respectively. All on LC at sight, CIF China Main Port basis.
The producer sees that the price is in the correction phase after enjoying the upward trend in the previous month, which is supported by orders from traders and hedgers. SSESSMENTS.COM noted that market sentiment that turned bearish now makes buyers no longer willing to buy at high prices.
Looking ahead, the producer told SSESSMENTS.COM that the high price gap between ABS Injection and HIPS Injection would push some converters to use HIPS to replace ABS since it is possible to change the raw materials for specific styrenics end-products. As such, the demand for HIPS Injection predicted would be better than ABS Injection, which could make HIPS Injection prices stable to firm in the future while ABS Injection prices have pressure to drop.
