Acrylonitrile Styrene Acrylate (ASA) price decline amid adequate Inventories and Lower supplier’s action

In February 2024, the price of Acrylonitrile Styrene Acrylate (ASA) experienced a decline, primarily due to reduced sourcing prices from major exporter South Korea. This decline attributed to a decrease in Acrylates prices in the feedstock market, while Acrylonitrile prices saw a notable increase. Market participants have observed suppliers accumulating bulk quantities over the past few months. This accumulation led to a retracement in supplier actions, contributing significantly to the decrease in ASA prices in the global market. Overall, these factors have led to a downward trend in ASA pricing, influenced by changes in feedstock costs and supplier behavior.

In the US market, Acrylonitrile Styrene Acrylate (ASA) prices experienced a notable decrease in February, dropping to 2500 USD/MT CFR-Texas, marking a decline of 3.84%. This reduction can be primarily attributed to a decrease in prices from major exporter South Korea. Despite this, the downstream Automobile market in the US exhibited resilience, with Light Vehicle (LV) sales growing by 9.2% year-over-year and 16.36% on a month-on-month basis in February, reaching a total of 1.25 million units. Additionally, the Construction sector also performed well during this period. The Manufacturing Purchasing Managers' Index (PMI) saw a significant increase in February, indicating positivity in overall industrial activities and influencing the demand for commodities from respective sectors. These robust activities in the automotive and construction sectors have played a crucial role in shaping ASA prices, highlighting the interconnectedness between market demand and raw material costs. Regarding supply, the current trend for ASA indicates ample availability. However, the Xeneta Shipping index for the Asian Pacific routes witnessed a significant 17.57% increase. In terms of pricing, market participants are engaged in lower bids as prices consolidate. Suppliers are exercising caution, avoiding excessive bidding or destocking, which contributes to a favorable pricing environment for the ASA in the market.

In the German market, Acrylonitrile Styrene Acrylate (ASA) prices experienced a notable decrease in February, falling to USD 2460 per metric ton CFR-Hamburg, representing a decline of 3.52%. Despite this decline, German car sales saw an uptick in February, benefiting from an extra leap year day. However, the demand for electric models continued to decline during this period. Nevertheless, there was a 1.77% month-on-month increase in new car registrations in Germany, with a total of 217,388 new cars registered in February. This marked a 5.4% rise from the same month a year ago, according to the KBA federal transport authority. In contrast, the German construction sector remained in contraction territory in the opening quarter, although there were signs of easing declines in activity, new orders, and employment. The Construction Purchasing Managers' Index (PMI) in Germany increased from the past five months but remained below the threshold limit in February. Despite these improvements, the construction sector's activity continued to be hindered by a lack of new work, attributed to factors such as client uncertainty, price pressures, and overall economic weakness. These factors have significantly impacted the demand for ASA in the European market.

According to ChemAnalyst's projections, there is an anticipation of bullish momentum in ASA prices. This projection is primarily based on the positive outlook for the downstream sector performance. Additionally, the Acrylates market is expected to experience a positive trend, which may impact the production cost of ASA. Furthermore, disruptions in the supply chain across the Red Sea remain a concern, potentially leading to an increase in freight charges. These factors are expected to play a key role in stimulating demand for ASA in the global market.