In September 2023, the prices of Acrylonitrile Butadiene Styrene (ABS) in the US and European markets exhibited a combination of market sentiments, influenced by the fluctuating demand patterns observed during this month. The ABS market resilience on the upstream material cost, including crude oil and feedstock Styrene and Butadiene prices, also pushed the pricing momentum of the ABS in the varied downstream market responses among the regional buyers. Moreover, the downstream automotive industry procurement for ABS also exhibited positive signs of improvement in the European market compared to the USA since August 2023.

The ABS prices in the USA witnessed stability in the week ending September 22, 2023, because of the narrowed demand-supply gap, the dwindling downstream demand, and enough inventories. The downstream automotive demand in the USA market for ABS was primarily impacted by the UAW (United Auto Workers) union’s strike, which entered its Fourth Day and substantially affected North American production for the Three Major Automakers. As per the latest analysis, a UAW strike is further expected to slash the ABS new offers from the Big Three automakers, The Ford Plant, the GM plant, and The Stellantis plant. Moreover, the ABS inquiries from the overseas market have persistently fallen since the termination of August 2023, and as a ripple effect, significantly pulled down the offtakes for ABS for the H1 of September 2023. Whereas the stagnancy in the ABS prices this week is drawn by adequate supplies and the stability in the feedstock Styrene monomer price trajectory for two consecutive weeks.

The ABS price trend acquired unchanged values in the European market in the week ending September 22, 2023, backed by the stagnation in the feedstock styrene prices and volatile downstream demand fundamentals significantly. In the first week of September 2023, the ABS prices gained an upward momentum along with an escalation in the downstream demand fundamentals from the automotive industry and cost support from the feedstock Styrene monomer price trend. Moreover, the downstream market sentiments have turned positive in the Eurozone, and buying interests have improved following the limited stocks, and it is anticipated to drive up the ABS prices in the coming weeks. Additionally, the decline in overall production was primarily driven by the manufacturing sector, and companies continued to increase their workforce in September. However, the rate at which new jobs were being created was only minimal, indicating the presence of unemployed capacity and a notably pessimistic outlook compared to the last quarter of the previous year.

As per ChemAnalyst, the ABS prices are likely to gain a northward movement along with the strong procurement activities in the downstream industries and limited stock availability across the globe. Additionally, US and European prices may surge on account of constrained supplies to fulfill domestic offers across the overseas market.