For the Quarter Ending June 2021
Acrylonitrile Butadiene Styrene (ABS) market in North America observed a steep rise in prices initially in Q2, backed by the insufficient supply activities in the region. Post winter disruption in February, prices of ABS skyrocketed during the month of April and May, which later started declining as major manufacturers started resuming their plant operations in the country. On the demand side, ABS market exhibited prominent growth in consumption from downstream construction and automotive sector, post successful vaccination drive in the country. Therefore, a steep rise was observed by the end of May, which later declined during June and finally settled at USD 2910/MT in USA.
Acrylonitrile Butadiene Styrene (ABS) market in Asia demonstrated mixed sentiments, where the demand from some countries improved effectively, while some countries struggled with repercussions of the pandemic or slow economic recovery. In China, Acrylonitrile Butadiene Styrene (ABS) demand showcased firm to stable sentiments, where the construction and automotive sector traced recovery, showing normalcy like pre pandemic levels. However, active restocking and cheaper upstream materials adhered stability in the prices of ABS in the second half of the quarter. Meanwhile in the Indian market, feeble demand and abundant availability of ABS along with raw material Styrene monomer, pushed down the prices in the initial days which later started rising marginally in the month of June. Therefore, the prices of ABS hovered around USD 2734/MT for India and USD 2080/MT for China during the month of June.
Economic recovery in Europe was the prime cause that bolstered the demand for ABS across the region. Manufacturers revealed that they received many contracts for Acrylonitrile Butadiene Styrene (ABS) where some of them were booked till the end of this year. Heavy demand for ABS was attributed to the market optimism prevailing from successful vaccination drives and ease in lockdown restriction in most of the European countries. Therefore, under firm demand and improving production activities, prices of ABS in Europe underwent a steep flight during this quarter.
For the Quarter Ending March 2021
During Q1 2021, the Asian market witnessed a steep growth in the overall ABS demand from several downstream sectors. Lunar holidays in China pushed several small-scale ABS units to remain non-operational for some days during February, that halted the domestic supply of ABS. Meanwhile in India, ABS demand from the domestic electronics and home appliance manufactures rose significantly that supported its prices in the Indian market. Throughout the quarter, supply remained tight which prompted ABS prices to rise from USD 2016 per MT in January 2021 to USD 2120.3 per MT (March 2021) in India.
The European market experienced strong demand support of ABS from the domestic as well as from the overseas. Lower upstream supply in Europe halted the production of ABS across the region, although the demand remand remained strong throughout the quarter. Furthermore, container shortage across Europe-Asia route amid strong export demand from Asia forced the prices to seek upward trend and hence the manufacturers were running their operations on lower capacities Meanwhile, a leading ABS manufacturer of Europe increased its ABS resin prices by approximately USD 476.9 per MT in Europe with effect from 1st March 2021.
Winter storms in the US impacted several plant activities during Q1 2021. Several upstream material supplies remained tight such as Acrylonitrile, Styrene etc. ABS supply across the region remained insufficient to satisfy the regional demand. With dented production lines, supply chain remained disrupted with dome expectations of improvement in the forthcoming months.
For the Quarter Ending September 2020
ABS market in Asia is strongly driven by the automotive sector, but the market got a strong support from the manufacturers of appliances, toys and air-conditioners despite a major blow to the automobiles sales in third quarter. Chinese ABS producers reported healthy margins and their operating rates never fell below 85% throughout Q3. The demand is likely to stay robust till the year end as September to December is said to be the peak season for the ABS market, however, tighter supply might continue to affect the procurement cycle.
ABS demand bolstered during Q3 2020 with prices turning firmer starting the second week of August. Increased buying of household appliances and air-conditioning units during the pandemic as many stayed at home quarantine and adopted the work from home culture, strengthened the market sentiments. After a major fallout from the economic slowdown, the demand from the US automotive sector started pushing up towards the end of the quarter, projecting a V-shaped recovery in the sectoral growth. The US August acrylonitrile-butadiene-styrene (ABS) prices faced upward pressure in August amid tightening global supply. The engineered plastic is widely used for making toys and hence players are expecting surge in demand ahead of the Christmas holidays.
The European ABS producers announced a fresh round of price increase in Q3 stating that the demand for the material significantly exceeded the regional supply. Demand across the non-automotive sectors such as electronic appliances, furniture, toys etc. showed signs of recovery earlier than automotive, thereby driving the Q3 results for most of the ABS producers. Bouncing back from the economic disruptions due to COVID-19 pandemic, the appliances demand in Europe grew higher in September, driven by end-consumers investing more into home renovations.