For the Quarter Ending March 2024
North America
The North American Acrylonitrile Styrene Acrylate (ASA) market saw a nuanced evolution over the first quarter of 2024, finishing March with a modest price increase to USD 2570 on CFR – Texas basis. The initial downtrend was prompted by subdued demand in downstream automotive sectors and competitive feedstock pricing.
Despite positive signals in vehicle sales indicating a recovery, the overall impact was not sufficient to stabilize ASA prices immediately. As the quarter unfolded, February marked a continuation of the slump, reflecting the effects of the competitive bidding landscape and consistent pressure from international markets, particularly South Korea. Yet, signs of an uptick in the automotive sector and a robust construction sector failed to immediately reflect in ASA pricing dynamics.
However, March observed a reversal, with ASA prices lifting by 2.8%, indicative of a positive correction influenced by market demand. Light vehicle sales in the U.S. demonstrated resilience, sustaining growth and bolstering demand for ASA in automotive applications. Simultaneously, an ascending trend in construction activities contributed to the increase in demand. Despite fluctuations in the Manufacturing PMI and ongoing adjustments in global supply chains due to logistic constraints like those at the Panama Canal, the ASA market managed to regain momentum by the end of Q1.
APAC
In Q1 2024, the APAC Acrylonitrile Styrene Acrylate (ASA) market, particularly in South Korea, demonstrated a complex interplay of market forces. The quarter commenced with a price drop triggered by a decline in Acrylonitrile feedstock prices and subdued ester values, alongside a general market downturn due to weaker consumption within the construction industry and a slowdown in domestic car sales. This downward trend persisted into February, compounded by a contraction in the automobile sector, influenced by operational halts at major auto manufacturers and fewer working days. Concurrently, a significant downturn in construction orders, exacerbated by tightened financial lending, dampened the demand for ASA. Despite these setbacks, March saw a reversal with prices climbing by 3.5%, to USD 2380 per MT on FOB – Busan basis. This rise was largely attributed to a surge in Acrylonitrile costs and an uptick in demand within the automobile sector, which reported a month-on-month sales increase, albeit a year-on-year decline. The manufacturing PMI indicated a slight downturn, yet the export demand showed signs of consistent growth for three months, adding to the upward pricing pressure. The South Korean ASA market's recovery in March reflected increased purchasing activities by manufacturers, despite the ongoing global supply chain disruptions, including the Red Sea crisis. The proactive procurement was a strategic response to anticipated rises in logistics costs and raw material prices.
Europe
In Q1 2024, the European Acrylonitrile Styrene Acrylate (ASA) market, specifically in Germany, displayed a variable trajectory before closing March with a modest price recovery to USD 2530 on CFR – Hamburg basis. The quarter initiated with a downward drift, as key feedstock prices dipped, impacting ASA costs. The downturn in automotive sales in January, despite a year-on-year uptick, and the persistent contraction in the construction sector exerted additional downward pressure on ASA demand and prices. February saw a continuation of the downward trend, influenced by external market factors, including a decline in German car sales and persistent struggles within the construction sector, which faced headwinds from client uncertainty and economic sluggishness. New orders in construction diminished, although at a slower rate, pointing to potential stabilization. In March, there was a slight reversal in ASA prices, driven by an uptick in costs from major exporters like South Korea. Despite a mixed performance in the automotive sector, with a dip in year-on-year sales but a month-on-month increase, and a subdued manufacturing PMI, the market managed to eke out a price increase. Throughout the quarter, the supply of ASA remained robust, indicating a market well-aligned with inventory levels and strategic supplier actions, catering to the nuanced demand from automotive and other industrial sectors.
For the Quarter Ending December 2023
North America
In the US, the Acrylonitrile Styrene Acrylate (ASA) market witnessed contrasting trends in January, marked by an overall increase in prices driven by favorable feedstock pricing in major exporting countries. The domestic downstream Automobile market showed a positive trajectory with month-on-month rise in vehicle sales in the respective quarter, reaching 15.8 million units (annualized) in December, exceeding expectations.
The imbalance between demand and supply, particularly notable in new orders from suppliers, contributed to the incline. South Korea, a key ASA exporter, played a role in this price fluctuation. Despite increased consumption of upstream crude oil, sufficient inventory levels among manufacturers restrained price support. The economic landscape in 2023, shaped by inflation and interest rates, influenced commercial real estate dynamics.
Notably, the Consumer Price Index (CPI) headline indicated a 0.3% month-on-month rise in inflation for December. The contrasting trends in the US ASA market highlight the intricate interplay between domestic factors and global influences on pricing dynamics. As of Fourth Quarter ending the price of the Acrylonitrile Styrene Acrylate concluded at 2730 USD/MT CFR – Texas marking an incline of 10.08%.
APAC
In APAC majorly South Korea, Acrylonitrile Styrene Acrylate (ASA) prices have recently experienced an upward trajectory attributed to heightened feedstock costs, particularly Acrylonitrile and Acrylate Esters. Despite this, the domestic market witnessed a notable 12.9% decline in new vehicle sales for December compared to the previous year, totaling 114,290 units. However, the overall vehicle sales across the major importing nation witnessed a notable rise. Manufacturing production levels remained stable in November, with a slight decrease in incoming new business offset by a renewed decline in backlogged work. While inflationary pressures eased in the final month of 2023, companies reported rising raw material prices. The supply of ASA in South Korea exhibited a moderate trend, influenced by reduced industrial activities indicated by a slight decrease in the Purchasing Managers' Index (PMI) data. Despite the moderate performance in the automobile and construction sectors, demand from major importing countries like the US and India remained robust. The price surge is primarily linked to increased feedstock prices and an imbalance in the demand-supply chain. The quarter concluded with a price of USD 2550/MT for Acrylonitrile Styrene Acrylate (ASA) FOB Busan in South Korea.
Europe
During the fourth quarter of 2023, the Acrylonitrile Styrene Acrylate (ASA) market in Germany saw an upward trajectory driven by increased costs from its major exporter, South Korea. Despite encountering challenges in the automotive sector, characterized by a substantial 23% year-on-year decrease in new car registrations in December, and complications in the construction industry due to market uncertainty and elevated interest rates, the ASA market experienced a decline in demand. However, prices exhibited an upward trend due to limited players in the market. The surge in prices was notably linked to the rising importing costs, as Germany does not manufacture Acrylonitrile Styrene Acrylate (ASA). Economic indicators, including the German Manufacturing Purchasing Managers' Index (PMI), indicated a subdued recovery with hurdles in the automobile and construction sectors influencing the demand for the Acrylonitrile Styrene Acrylate (ASA) in the European market. As the quarter concluded, the price of Acrylonitrile Styrene Acrylate (ASA) reached 2750 USD/MT CFR-Hamburg, representing a noteworthy incline of 9.25%.
