With Stable Feedstock Costs, ABS Prices Showcase Stagnant Trends Across the Globe
- 14-Mar-2023 2:34 PM
- Journalist: Harold Finch
Acrylonitrile Butadiene Styrene (ABS) prices maintained a static trend globally at the start of March 2023, owing to the modest feedstock Styrene costs and limited production in the face of slow global demand and uncertain upstream Crude Oil values. The escalating Crude Oil costs eroded the profit margins of the market players globally and impacted production, resulting in muted demand sentiments amongst the market players towards the termination of Q1 2023.
Despite lower prices of the feedstock Styrene, ABS prices remained unchanged in the week ending 10 March 2023 throughout North America. As buyers took a wait-and-see attitude for further negotiations and to understand the market outlook, thus, the purchasing pulse was reported to be stagnant this week. As a result, the automotive industry offers for ABS continued to be silent in the region.
ABS prices were stable this week in Europe due to the stagnant feedstock Styrene monomer costs. The abundance of stocks in the region has negatively impacted the pricing dynamics of the commodity this week. Meanwhile, domestic offers in the German automotive industry took a slow growth in the second week of March and supported the final ABS prices in the European market.
Similarly, Asian ABS prices were assessed as stable compared to the previous week, owing to the lower feedstock Butadiene prices coupled with unchanged Styrene price movement and moderate demand fundamentals in the market. Downstream demand was weak in Asia, and high levels of inventories affected the price movement of ABS in the week ending 10 March 2023 in the APAC market. As per the latest insights, buying activities were limited, as discussions for April cargoes are yet to initiate for ABS.
As per ChemAnalyst, the ABS prices are expected to remain stable on a bearish note as there is slow positive demand anticipation in the global market for the product at the end of Q1 of 2023. Also, buyers are procuring the material on a need basis. Additionally, ABS production will likely remain limited due to the elevation in upstream Crude Oil costs, diminishing the supply-demand gap towards the end of Q1 2023.