In the global market the price of the Acrylonitrile Styrene Acrylate (ASA) price witnessed an increment in July. This increment in the ASA price has counteracted the feedstock price in the major producing countries like South Korea. Challenging suppliers’ actions along with the increasing freight charges sharply has cumulatively played a key role in influencing the ASA price rise in the global market.

In the South Korean market, the price of ASA marked an increment of 2.0%, reaching 2550 USD/MT FOB-Busan. This increase is noteworthy amidst a backdrop of declining feedstock prices, with Acrylonitrile, Styrene, and Acrylate Monomer prices decreasing by 1.48%, 3.8%, and 3.76% respectively in July. In the downstream market, the automobile sector reported 109,924 units sold in July, reflecting a 1.7% month-on-month decrease and a 4.3% year-on-year decrease. The construction sector also posted underperformance during this period. Hanwha Co., Ltd, a major construction firm, reported sales of 967.7 billion won, which represents a 27.9% decline from the previous year. This decline is attributed to the completion of large projects and a decrease in new construction orders, coupled with rising expected costs of completion, leading to a drop in operating profit. Despite these challenges, South Korea's manufacturing PMI data indicated a sustained improvement in operating conditions at the start of the third quarter of 2024. Although there was a marginal decrease in the Manufacturing PMI numbers, they remained above the threshold limit, signaling continued positivity in manufacturing activities. The increase in ASA prices can be attributed to several factors. Firstly, increasing freight charges have added to the overall production costs. Secondly, there is notable activeness in supplier actions, particularly concerning inventory management and addressing the deficit in the supply-demand ratio. These dynamics have contributed to the increment in the price of ASA in the South Korean market.

In the German market, the price of ASA increased by 1.9% to 2690 USD/MT CFR-Hamburg. This rise is primarily linked to price increases from major exporters in the Asian market, particularly South Korea. In the downstream market, the automotive sector experienced a significant decline, with new vehicle sales falling by 19.9% in July compared to June, totaling 238,263 units. This represents a 2.1% decrease from July 2023. Germany's construction sector remained in contraction at the start of the third quarter, although the rate of decline in total activity eased for the third consecutive month. The Construction PMI showed a marginal increase but remained below the threshold limit, indicating continued underperformance. Additionally, freight charges from the Far East to the European region surged during this period, reaching 8535 USD for 40’ container rates. This increase in freight costs has played a key role in influencing ASA prices during this period.

As per the ChemAnalyst anticipation the price of the ASA is expected to showcase bullishness in the upcoming sessions. This bullishness in the ASA price is primarily linked with the increasing freight charges and the anticipated long buildup activities from the market participants in the inventories managements. Global positivity in the demand will also play a key role in influencing the ASA demand which is expected to be seen in price fluctuations.