Dwindling demand and weakening feedstocks lead Asian Acrylonitrile Butadiene Styrene prices to Nosedive, US ABS Stable
- 16-Dec-2021 3:17 PM
- Journalist: Kim Chul Son
Acrylonitrile Butadiene Styrene (ABS) prices have measured a change of market sentiment where prices of ABS declined in various Asia Pacific market. Demand deterioration towards the end of the year as market participants scurried for fresh contract negotiations for Q1 2022 has pressured manufacturers to drop prices in order to ease available inventory levels.
Acrylonitrile Butadiene Styrene market maintained bullish sentiment for a major part of the year consolidating on sharp demand growth in the wake of economic recovery after slump of 2020. Demand from automobile remained fairly underwhelming however sharp demand pull from construction and manufacturing sector drove ABS price sentiment during 2021.
Recent decline in key feedstocks styrene and butadiene also has significant bearing over the current market dynamics of Acrylonitrile Butadiene Styrene which resulted in weakened prices of the available material. Styrene prices have fallen to USD 1055 per MT while butadiene prices dropped to USD 715 per MT in South Asia.
Price of Acrylonitrile Butadiene Styrene has tumbled down to USD 2410 per MT on FOB basis after securing multi-year high prices in Oct 2021. Manufacturers garnered healthy margins in a production-deficit market as buyers were observed in dire straits throughout the year scampering to secure the material.
US Acrylonitrile Butadiene Styrene prices have remained strong despite a weakened market outlook in Asia. Imports from Asia are unable to reach US shores as freight and shipping costs continue to trouble global supply chains hampering maritime trade following a yearlong pattern. Acrylonitrile Butadiene Styrene prices in USA were last assessed in range between USD 2950-3024 per MT (134-137 cents/lb.) on FOB basis.
As per ChemAnalyst, “Market participants indicated that Acrylonitrile Butadiene Styrene market sentiment in Asia is likely to make progress in the coming quarter as consumption levels are expected to improve in the coming months. However, in the short-term market sentiment is likely to remain dull with ample supply availability and weak demand fundamentals of Acrylonitrile Butadiene Styrene.”