For the Quarter Ending June 2021
During the second quarter, ABS/Polycarbonate resin prices remained high in USA, as the demand restored significantly while the production activities improved at slower pace. The effect of freezing fallout in the previous quarter remained persistently strong in this quarter too, as major manufacturers tried hard to store their power supply issue and those who already restored the power were facing other damage occurred due to the chilling weather in the prior quarter. Consequently, prices remained sky high for feedstock ABS (Acrylonitrile Butadiene Styrene) and PC (Polycarbonate) in the country, that pushed up the prices of derivative ABS/Polycarbonate compound in the region.
Asian market witnessed an overall supply recovery for polymers including feedstock PC and ABS during the month of April and May, which ultimately led to an ease in the regional prices. Besides, feeble demand from downstream manufacturers played a significant role in pulling down the prices of feedstock ABS and PC and their other derivative products in the region. In China, despite of the economic boom in the country, demand for ABS/PC compound remained dented throughout the quarter. Besides, in India the onset of the second wave of the virus since April created chaos in the overall Indian polymer market and thus slowed down the offtakes from the domestic polymer market.
European market experienced an overall shortage of several raw materials, that uplifted the price trend of downstream products across the region. This shortage of products and raw materials was backed by lower imports from USA, following the slowed resumption of production activities in the country. Therefore, prices of feedstock PC and ABS increased effectively across the region, Major producers like Trinseo increased their ABS and PC prices for Europe during this timeframe. On the demand perspective, the overall demand for most of the polymers remained significantly firm across the European region during Q2 2021.
For the Quarter Ending March 2021
Prices of ABS/Polycarbonate compound showed a direct impact of the demand-supply fundamentals and fluctuations in prices of their raw materials. In North America, low production activity as an effect of disruptions caused by freezing fallout, compelled the manufacturers of ABS and Polycarbonate to halt manufacturing temporarily. Amidst stable demand from the downstream sectors, the prices of ABS/Polycarbonate compound showed marked improvement during the quarter. Consistent rise in the raw material rates, maintained cost pressure over the regional manufacturers.
In the Asian market, prices of key raw materials showed mixed behaviour in most of the Asian countries. While feedstock ABS showed stable growth in prices during Q1, polycarbonate followed an upward suit regionally. Prices of feedstock polycarbonate showed consistent rise in the Indian markets, while due to Lunar New Year holidays, the Chinese market showed a steep rise in prices, which later stabilised during the end of March. Thus, the prices of ABS/Polycarbonate compound across the APAC region fluctuated from high to stable during the quarter.
Q1 2021 showed the dependency of European countries on imports of key raw materials, which was high enough to affect the regional ABS/Polycarbonate compound prices affectively. Lower exports by USA to Europe due to critical weather condition prompted the prices of European ABS/Polycarbonate compound to show incredible rise. In addition, hight freight prices supported the prices of Polycarbonate feedstock, providing extra burden on prices of its downstream ABS/Polycarbonate compound.
For the Quarter Ending December 2020
Selling indications for ABS/Polycarbonate compound across Southeast Asia turned bullish weighed by the combination of supply side issues from western region. Higher freight cost and delay in port clearances for feedstocks ABS and Polycarbonate left no room for domestic manufacturers to protect their margins without transferring the cost pressure to the downstream commodities. After suffering from pandemic induced repercussions, as domestic industries prepared for making up the loss incurrent in the first half of the year, demand for ABS/Polycarbonate alloy witnessed a steep climb across Q4. Besides, revival in automotive and electronics industry in November amidst the festive season in India also contributed in adhering a further upward push in its values.
Supply of ABS and Polycarbonate across the US was hampered due to the force majeures declared in several petrochemical plants following the spate of Hurricanes in the month of October. Weighed by the weak availability of the feedstock, prices of ABS/Polycarbonate alloy witnessed steep highs. As the demand from automotive and electronics industry also witnessed gradual improvement, it also contributed in pushing the values of ABS/Polycarbonate compound in Q4 2020.
Demand for ABS/Polycarbonate compound remained stable to firm in the Q4 2020 in Europe amidst the revival in industrial consumption and partial lockdown implemented in several parts of the region under fears of the new Coronavirus in December. Germany witnessed an increased export demand from Asia Pacific countries like India which considerably improved its export revenue. Besides, increase in cost for feedstock ABS and Polycarbonate due to higher freight cost across the globe aggravated the supply crises in several part of the region.