The price of Acrylonitrile Butadiene Styrene (ABS) in the European market continues to fall during the first week of December 2022. The ABS market was further depressed in December due to the noticeable price drops in the three feedstocks, i.e., Acrylonitrile, Butadiene, and Styrene, the wide gap between imported and domestic prices, and poor market dynamics.

The market sources revealed that cheaper imports from Asia and weak demand from downstream industries are to blame for the recent price drops. After falling for weeks, the cost of feedstock Styrene in Europe settled at USD 1175/MT Ex-Hamburg during the week finishing 2nd December 2022.

In addition, the cost of ABS in the Eurozone decreased as a result of cheaper imports from Asia and an abundance of products on the ground. The stockpile of ABS is extensive on the lookout and adds to the decrease in cost pattern. Due to the high availability of gas in the Eurozone, natural gas prices have stabilized in the market, and Europe has stored more than 70% of its natural gas to meet winter demand.

However, due to the current economic downturn and consumers' unwillingness to spend on non-essential materials across Europe, demand from downstream industries such as the automotive and construction sectors is weak. At the moment, sentiments are also stagnant in the global market.

In addition, the region's port congestion is waning, and material availability can accommodate demand regardless of the price of ABS in the European market has further reduced due to eased natural gas prices this week and diminishing disruptions in the supply chain.

ChemAnalyst found that during the week ending 2nd December 2022, the price of ABS Extrusion grade on an FD Hamburg basis hovered around USD 3170/MT, representing a 1.5% reduction.

ChemAnalyst anticipated that weak demand in the downstream industries and negative market sentiments are expected to keep ABS's price down. Additionally, as the upcoming holidays draw near, the region's order might be more vulnerable.