Local ABS Premium Over Imports Narrows Below $100 Amid Distributor Selloffs in Turkey

Turkey’s ABS market continued to weaken in June as falling feedstock costs and sluggish demand put strong pressure on prices. After a sharp rally earlier this year, the market has been correcting steadily, with local distributors becoming increasingly aggressive in reducing prices to clear inventories.

The gap between locally available ABS natural injection material and imported cargoes has now narrowed to below $100/ton, marking the smallest premium seen since September 2024. The spread, which had surged to around $450/ton during April, has contracted significantly as distributors rushed to reduce stock levels amid expectations of further declines.

Local ABS prices witnessed a steep correction this week as distributors offered substantial discounts to stimulate sales. Market participants reported that weaker demand after the Eid holiday, combined with the sharp fall in crude oil and upstream feedstock values following the US-Iran peace agreement, triggered widespread destocking activity and increased selling pressure.

Although domestic prices have fallen sharply over the past month, they still remain considerably higher than levels seen before the geopolitical rally. However, the pace of recent declines highlights how quickly the market has reacted to worsening fundamentals.

Imported ABS prices have also moved lower, although the decline has been more gradual compared to the local market. Higher freight costs from Asia to Turkey have provided some support to import offers, limiting the speed of price reductions. Nevertheless, competitive cargoes from Asia and the Middle East continue to pressure the market and keep buyers cautious.

The broader feedstock chain has also turned increasingly bearish. Crude oil prices have dropped sharply in recent weeks, while key ABS raw materials such as styrene and butadiene have recorded notable losses across major markets. This has reduced production costs and strengthened expectations for further price adjustments.

Market participants believe the ABS market may remain under pressure in the coming weeks if demand fails to improve. With buyers continuing to adopt a wait-and-see approach and feedstock costs moving lower, many expect sellers to remain flexible in an effort to secure sales and reduce inventories.

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