Global ABS Market Dynamics Firm Amid Growing Speculations Around Global Supply Chains
- 16-Mar-2022 3:37 PM
- Journalist: Francis Stokes
Acrylonitrile Butadiene Styrene (ABS) market has been strong worldwide on the back of stable to healthy demand dynamics and rising uncertainty around global supply chains amid escalating European crisis. Another key factor at play has been the substantial volatility in crude oil prices globally which soared to USD 130/b in March first week and then declined sharply.
Railway and road transport from Asia to Europe has been severely hampered on the backdrop of ongoing crisis between Ukraine and Russia. Along with this, recent resurgence in covid cases and lockdown in city of Shenzhen in China has further escalated the uncertainty around supply of various commodities in the global market. There are speculations around closing Shanghai port, one of World’s largest port, under the fear of rising covid cases. The situation is expected to send shockwaves in the global supply chains.
Meanwhile, in the European market, Acrylonitrile Butadiene Styrene market has gained more than 2.5% during the first two weeks of March and prices were assessed at USD 3260 per MT on FD basis in North-western Europe. Feedstock prices have been robust owing to strong cost pressure from upstream crude oil. Demand has slowed down in the European market as downstream players have been adopting a wait and see approach amid growing inflationary pressure in the commodities market in the European continent.
US market has also mirrored the above market trend where strong cost pressure from feedstocks has prompted manufacturers to keep the prices on the uptrend. On the demand side, automotive sector has been stable as operating rates have shown early signs of recovery in production, keeping Acrylonitrile Butadiene Styrene procurement on the firm side. Meanwhile, construction industry has also increased consumption as market participants have been seeking material ahead of peak season of demand. Increasing speculations around global supply chains has further pushed the stocking activities. Hence, as of 2nd week of March, Acrylonitrile Butadiene Styrene prices were assessed at USD 3090 per MT on FOB basis.
As per ChemAnalyst, “Global Acrylonitrile Butadiene Styrene market has hit its peak and it has been expected that ABS prices will gradually decline in the coming weeks. Early signs of drop in prices can be speculated from substantially drop in crude oil prices in last few days signifying changing market dynamics.”