ABS

Notwithstanding rising feedstock butadiene prices, ABS prices dipped to US$1760/MT in Asia in the week of December 17, 2007. Markets were lackluster mainly on account of quiet demand from China, which caused a drop in supplier offers as buyers preferred to wait and watch. Reluctance on part of Chinese buyers was due to tightening of credit control by the Chinese government, causing a negative cash flow situation for the importers. Hence markets for ABS are not expected to recover even in January.