Weak Demand Fundamentals induce another fall in USA Acrylonitrile Butadiene Styrene prices

US Acrylonitrile Butadiene Styrene prices have dropped in last few weeks owing to sluggish demand from downstream automotive and allied industries along with stable feedstocks Styrene and butadiene values. Automotive industry continues to face production stagnancy due to limited availability of semiconductor chips. USA has one of the largest automotive industries in the world and home to companies like General Motors and Ford.

Acrylonitrile Butadiene Styrene prices have declined significantly by 5.5% as on 3rd week of January from the conclusion of December 2021. Styrene and Butadiene prices have started the new year on a sluggish note owing to improved production and stable demand, this has also resulted in decreased cost pressure over ABS prices. Stagnant vehicle production rates in automotive industry have resulted in decline in consumption of ABS and other polymers.

Butadiene prices have observed a marginal drop of approx. 1% while US Styrene prices have been stable at USD 1360 per MT on FOB basis. The stability in feedstock prices in early 2022 has been quite contrary to year old performance where Styrene and Butadiene prices remained on an incessant uptrend throughout 2021 owing to several production disruptions last year.

As per ChemAnalyst, “Acrylonitrile Butadiene Styrene market is likely to drop further in coming weeks where demand stagnancy from automotive sector is expected to continue and which will decrease the pressure over Acrylonitrile Butadiene Styrene inventory levels. Automotive industry is unlikely to improve production before H1 of 2021 and therefore demand for key products including Acrylonitrile Butadiene Styrene is also expected to remain sluggish until Q2 2022. Therefore, prices of Acrylonitrile Butadiene Styrene are likely to remain weakened towards second half of Q1.”