In mid-January, the Acrylonitrile-Butadiene-Styrene (ABS) markets in Asia and Europe exhibited contrasting pricing trends, shaped by varying cost factors, demand dynamics, and regional market conditions. While the Asian market witnessed stabilization amid weak demand and average cost support, the European market saw price increases driven by stronger demand and strategic supplier adjustments.

In Asia, the ABS market remained largely stable as cost factors provided moderate support. Among the three key feedstocks, acrylonitrile prices held steady as supply levels were constrained due to low production rates. Industry inventory remained tight, but a wait-and-see approach among downstream buyers softened market sentiment. The spot market for butadiene saw robust prices due to limited availability and a strong price-holding mentality among sellers. However, expectations of future capacity expansion and weaker downstream purchasing appetite tempered the upward momentum, pushing the market toward potential consolidation. Styrene prices, after initial declines in early January, rebounded narrowly due to rising crude oil costs and stable downstream demand. The relaxation of supply tightness, driven by plant restarts, prevented significant upward movement in the ABS market.

On the demand front, the approach of the Lunar New Year dampened purchasing activity in the terminal sectors, including home appliances in the ABS market. Many factories reduced operations, completing pre-holiday stockpiling. Although the extension of China’s national subsidy policy for household appliances offers a glimmer of hope for future demand, January’s overall demand-side support was subdued. The ABS market in China reflected these dynamics, with slightly reduced production rates at polymerization plants and limited changes on the supply side. Analysts expect the market to stabilize during the pre-holiday period as demand weakens further.

In contrast, Europe’s ABS market saw a notable price increase in January, fueled by robust demand from auto ABS which reopened strongly after the holiday season. In addition, Trinseo (NYSE: TSE) announced price hikes for its ABS grades, effective January 1, 2025, as follows: MAGNUM™ ABS resins increased by 45 Euro per metric ton. This increase reflects elevated production costs and strategic pricing adjustments amid recovering regional demand. The automotive sector’s resurgence, supported by euro-wide policy measures aimed at boosting industrial output, played a pivotal role in driving demand for ABS.

As per ChemAnalyst, the Asian ABS market’s near-term trajectory remains dependent on post-holiday demand recovery and feedstock cost trends. In Europe, strong end-user sectors, particularly automotive, are likely to sustain the upward price momentum. Divergent regional trends underscore the complexity of the global ABS market, influenced by localized factors ranging from feedstock availability to downstream demand dynamics.