20 Nov 2017
China Sourcing Update: Raw Material Prices Hard Goods (Oct 2017)
1. Price index of ABS resin goes down in October
The price index of ABS resin dropped by 0.8% mom in October, after rising by 1.9% mom in September (see exhibit 1).
The fall in the prices of ABS resin in October was due largely to a plunge in upstream costs and an excess supply of ABS resin. The prices of butadiene and styrene, two of the major raw materials of ABS resin, tumbled in the month. Meanwhile, an abundant supply of ABS resin coupled with a weak downstream demand in the domestic market also put downward pressure on the prices of the resin.
Looking ahead, we believe that the prices of ABS resin are unlikely to rise in the near future as the downstream demand for the resin is expected to remain soft.
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