21 Sept 2017
China Sourcing Update: Raw Material Prices Hard Goods (Aug 2017)
- Price index of ABS resin continues to go up in August
The price index of ABS resin rose by 3.5% mom in August, recording month-on-month gain for three consecutive months (see exhibit 1).
The increase in the prices of ABS resin in the month was mainly attributable to a surge in upstream costs. The prices of acrylonitrile, butadiene and styrene, the three major raw materials of ABS resin, all soared by more than 10% in the month. Moreover, a tightened supply of ABS resin due to the environmental examinations on ABS resin producers conducted by the Chinese government also pushed up the prices of the resin.
Looking ahead, we expect that the prices of ABS resin will go up further in the near future, as upstream costs continued to rise in early September and the downstream demand for the resin is likely to be strong during the high season for ABS resin consumption in September and October.
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