24 July 2017
China Sourcing Update: Raw Material Prices Hard Goods (Jun 2017)
1. Price index of ABS resin rebounds slightly in June
After having posted month-on-month decline for two consecutive months, the price index of ABS resin rose by 0.6% mom in June (see exhibit 1).
In our view, the rise in the prices of ABS resin in the month was mainly caused by a tightened supply of ABS resin, as indicated by the drop in the inventories held by ABS resin producers to low levels; and an increased demand for ABS resin from manufacturers of home appliances, one of the major downstream markets of ABS resin.
Looking ahead, the downstream demand for ABS resin from manufacturers of home appliances is likely to remain strong. Therefore, we expect the prices of ABS resin to rise further in the coming months.
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