In the global market, Acrylonitrile Styrene Acrylate (ASA) prices saw a significant drop this month, primarily driven by subdued demand from downstream industries. Additionally, the sluggish performance in overseas markets, particularly due to a slow start in January, further pressured ASA prices downward. This combination of weaker domestic and international demand has been the key factor behind the overall price decline observed in the ASA market this month.

In the Asian market, particularly South Korea, ASA prices fell by 3.3% in January. Industry-wise, LG Chem reported a 2024 revenue of KRW 48.9161 trillion, down 11.46% YoY, with operating profit plunging 63.75% to KRW 916.8 billion, reflecting ongoing challenges in both domestic and global markets. In the downstream automotive sector, the five major Korean automakers saw combined sales of 90,587 units in January, marking a 23.76% drop from the previous month and an 11.81% decline YoY. The construction sector continues to struggle amid high interest rates and rising raw material costs, leading to a 29% increase in construction costs since 2020. Bankruptcies like Shindonga and Daezer Construction, a surge in nonperforming real estate loans, and a seven-month decline in construction output have further strained the industry. Employment in the sector has decreased by 157,000 workers YoY, with investment shrinking and economic growth forecasts predicting further contraction in 2024. Experts are calling for increased investment to stimulate recovery and job creation. The ASA market continues to face downward pressure due to these economic challenges, alongside fluctuating demand from key sectors like automotive and construction, impacting overall ASA price decline.

In the European market the price of the ASA witnessed a notable decline this month. This decrease in the ASA price is majorly attributed to the lower sourcing price from the key exporters in the South Korean market. From the downstream market, According to data from the Germany Federal Motor Vehicle Office (KBA), new passenger car registrations in December 2024 totalled 224721 units. This represented 7.6% month-on-month decrease and a 2.8% decrease compared to the same month last year. Germany's manufacturing sector faces ongoing challenges with fears of US tariffs, snap elections, and rising insolvencies. While production declined less sharply in January, indicators like new orders and order backlogs show slowed deterioration. Companies are cautiously optimistic about future output, with hopes for a recovery post-elections and potential interest rate cuts. However, high destocking rates suggest that a recovery will take time, and the recession in Germany's industry may be more structural than cyclical. However the stable currency fluctuations and the decreasing freight charges coupled with the lower manufacturing activities have significantly affected the demand of the ASA in the European market.

As per ChemAnalyst's anticipation, the price of ASA is expected to showcase bullishness in the upcoming sessions. This anticipation in the ASA price rise is majorly aligned with the projection of an increase in the price of feedstock, which is expected to raise ASA production costs. Additionally, the expectation of a rise in manufacturing activities from the global market, particularly in automotive, construction, and electronics sectors, will impact the overall pricing dynamics of ASA globally.