ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Commodities

ABS prices track higher on Chinese auto buying

Asian market for widely used plastic tightens as demand outpaces supply

TOKYO -- Prices for ABS, a plastic used in cars and consumer electronics, are rising in Asia owing to robust demand from China, the world's largest automobile market.

Asian spot ABS climbed to $2,040 per ton in late September, a 9% jump from the previous month and a 40% spike on the year. 

Shipments of body kits and other autoparts to China, which accounts for half of global demand for ABS, have been growing. New-vehicle sales in China totaled 2.18 million units in August, according to the China Association of Automobile Manufacturers, climbing 5.3% on the year for the third straight month of increases.

Chinese demand for ABS in 2017 is expected to rise another 6% from the previous year, by industry estimates. No new plants are schedule to begin production this year, however, leaving the market looking increasingly tight. 

Prices of petrochemicals used to make ABS, which stands for acrylonitrile butadiene styrene, are also up. Styrene monomer fetched $1,315 per ton in late September, 5% higher than a month earlier. Butadiene is up 9% at $1,500 per ton. 

Some Japanese ABS makers are considering price hikes as raw materials become more expensive.

"We want to raise prices about 25-35 yen (22-31 cents) per kilogram within the year," said Koichi Sekine, an executive at UMG ABS, Japan's largest producer of the plastic. The company expects feedstock prices to continue to rise and seeks to pass the costs on to autoparts makers and other customers. 

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 19th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media