ABS Prices Declined in the Global Market amid Stable Supply and Soft Demand Dynamics
- 22-Sep-2022 5:43 PM
- Journalist: Timothy Greene
In the US market, Acrylonitrile Butadiene Styrene (ABS) price sustained its downtrend in September 2022, despite marginal improvement in demand. The data shows a decline of around 3.2% in ABS for the USA during the first half of September 2022. This downtrend has been consistent since July 2022, when rising inflation and projected decay in car sales supported this ABS pricing dynamics.
The global automotive sector has been struggling to gain traction since the start of the pandemic. Recently, key global automobile manufacturers have released their sales data, which shows that August sales have improved effectively in the global market. However, at the same time, elastomers prices tumbled weekly.
In the meantime, European players have also witnessed a similar decline in ABS prices, as the European market were highly uncertain due to the repercussion of the Russia-Ukraine war. Since the war started, Western Europe countries have been battling with the threat of crippling energy supplies amidst the looming recession in the market. As per the data, German ABS Prices have showcased a decline of around 2% during the first two weeks of September. However, it was observed that the European automotive sector had improved effectively during August 2022, prompting it to increase further till the end of September 2022.
On the other side, the Asian market has also been on the same track, where despite significant improvement in demand fundamentals, ABS prices in India tumbled significantly during the first half of this month. India will meet its festive season soon; thus, the demand will likely reach its yearly peak. According to the sources, Indian automotive giants expect a notable rise in sales during this festive season, improving the demand for Elastomers like ABS in India.
According to ChemAnalyst, ABS prices will likely keep easing for global buyers as manufacturers and traders try to sustain offtakes from downstream users. However, pricing dynamics may change for October, and its path may start to follow an inverse trajectory.
