In the global market, Acrylonitrile Styrene Acrylate (ASA) prices experienced a significant decline in November. This decline in the ASA price is primarily due to a sharp reduction in feedstock prices, particularly Styrene and Acrylate monomers. Furthermore, effective inventory management by market participants has played a key role in reducing bidding activities, which has further contributed to the downward pressure on ASA prices. This combination of lower feedstock costs and controlled inventory levels has been instrumental in shaping the overall price decline in the ASA market.

As of November, ASA prices in the South Korean market dropped to 2,480 USD/MT FOB-Busan. The primary driver behind this ASA price decline was a significant decrease in feedstock prices, with Styrene and Acrylate monomers registering sharp reductions of 16% and 4.35%, respectively. Although Acrylonitrile prices rose by 2.5%, its impact on overall production costs was minimal. Additionally, subdued domestic and overseas demand coupled with the lower feedstock price have further pressured ASA prices. While the manufacturing sector saw slight improvements in new orders, production and employment declined as firms focused on cost management amid rising input inflation. According to the Bank of Korea, the Business Survey Index (BSI) for manufacturing fell to 68 in November, down from 69 in October, reflecting cautious market sentiment. Suppliers are accumulating inventories on a need basis, maintaining balance amidst reduced feedstock prices. Statistics Korea reported a 3.2% m-o-m decline in South Korea's exports of Acrylonitrile-based resin in October, totaling 29,840.3 MT.

As of November, ASA prices in the U.S. declined to 2,660 USD/MT CFR-Texas, primarily due to lower sourcing prices from South Korea, a key Asian exporter. Feedstock dynamics played a significant role, with Styrene prices decreasing by 6.6%, Acrylate monomers rising modestly by 0.9%, and Acrylonitrile prices dropping by 4.3% during the same period. A rise in protectionist sentiment prompted one in four U.S. manufacturers to stockpile inputs in November, anticipating tariff-induced price hikes. Suppliers responded to reduced freight charges—now at 5,477 USD per 40-foot container—and an ongoing surplus in supply by lowering ex-quotation prices. Stable supply levels, supported by adequate production and strategic inventory management, ensured steady availability for key sectors like automotive and construction.

As per ChemAnalyst's anticipation, ASA prices are expected to exhibit bearish trends in the upcoming sessions. This anticipated decline in the ASA price is primarily attributed to the expectation of lower feedstock prices, which are likely to reduce production costs. Additionally, temporary price corrections in the global market are projected to further influence the downward trajectory of ASA prices, contributing to an overall decline in the near term.