As China’s debt crisis has caused China’s exports of consumer goods to Europe and the United States to stagnate, China has reduced the procurement of raw materials. The prices of raw materials for the industries such as synthetic resin and fiber in Asia are accelerating, falling by about 20% in the past two to three months.

Synthetic resins used for the housing of home appliances and groceries in daily life began to decline in price since early April, and the decline has continued to increase. Currently, ABS resin (acrylonitrile-butadiene-styrene copolymer) is US$1815/ton, and polystyrene resin is US$1415/ton, which is 13-18% cheaper than in late April.

Due to the sluggish exports from China to Europe, and the temporary suspension of domestic home appliance replacement subsidies in China, the demand for synthetic resin decreased. China imported 680,000 tons of ABS resin from January to May, which was a decrease from the same period of last year. 15%.

The spot price of raw materials for polyester fiber, p-xylene, fell about 25% compared with the record high value of the recent March, and was around 1200 USD/ton. Although China is the world's largest producer, the lack of apparel apparel exports to Europe has led to an increase in China's domestic fiber stocks.

Compared with polyester, the raw material (acrylonitrile) of propylene fiber used for higher quality garments was around 1,900 US dollars/ton, 20% cheaper than in March.

The decline in Asian prices also began to have an impact on Japan. Synthetic resin companies such as Taiyo Vinyl Corporation, which is part of Tosoh Corp. of Japan, have begun to partially reduce price increases in food-container and building materials-oriented user price negotiations.

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