Acrylonitrile Butadiene Styrene Market in China Experiencing a Freefall in the Month-End
- 28-Apr-2022 8:36 AM
- Journalist: Nina Jiang
Acrylonitrile Butadiene Styrene market in China has observed a sharp fall during this week's assessment as ABS prices nosedive in the week ending 29th April 2022. Demand dynamics have been weak while the operating rates are above par in the domestic market resulting in an oversupply of the material in the market.
The prices in China have declined and were assessed at USD 2170 per MT on CFR basis for the high injection moulding grade in the mid-week assessment of April ending week.
Meanwhile, all three key feedstocks have turned bearish, easing cost pressure on the manufacturers. Butadiene, after observing bullish rally in the early part of the month, has slowed down and dipped in the latest assessment by ChemAnalyst. Global crude oil prices have been on the stronger side despite recent ease in pricing sentiment worldwide.
Butadiene prices, after hitting a peak of USD 1665 per MT during the 2nd week of April, have dropped substantially and were assessed at USD 1500-1505 per MT in China's domestic market during the last week of April 2022.
The ongoing resurgence in covid cases has been adversely affecting the demand dynamics of Acrylonitrile Butadiene Styrene. Traders have been reluctant to procure the material while maintaining a wait-and-see (conservative) approach in the Chinese domestic market. The epidemic has badly impacted logistics and transportation in China.
As reported by several manufacturers, the operating rates have been healthy, availing ample material in the market despite weakening demand sentiments in the market.
As per ChemAnalyst, "Acrylonitrile Butadiene Styrene market is expected to remain bearish, and prices may fall further in the coming weeks as demand dynamics are likely to continue on the sluggish trend. Meanwhile, the pricing dynamics of all the three feedstocks have been forecasted to decline further in the short term. Supply chains are also expected to remain snug as logistics and transportation are unlikely to change momentum.