Lower final SM Maintenance Shutdown

Lower final product order by 40-50% | ABS margin remains negative

Jun 30, 2022

- Lower final product order by 40-50%- ABS margin remains negative

Asian Acrylonitrile-butadiene-styrene was
assessed down $60-65/mt on the week at $1,640-1,680/mt CFR China June 29,
weighed by shrinking downstream demand on final products and lowered upstream
prices. Sources claim that global inflation
has caused a decline in demand for final products both at home and abroad. The ABS
buying appetite in domestic and importing markets was therefore lower. A producer
stated that final product orders were falling by between 40-50% and 50%
depending on the product. This prompts ABS producers to reduce ABS operation
rates, as otherwise inventory and cash flow could be affected. The ABS
sentiment is also being impacted by falling upstream prices. In the week ended
June 29, the Styrene Monomer cost was down $53.5-58.1/mt. The Asian
ABS margin was minus...

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