South Korean Price Hikes Propel Global ASA Prices Upwards

In the global market, the price of Acrylonitrile Styrene Acrylate (ASA) has surged in May, largely influenced by increased prices from major manufacturers in South Korea. This uptick in ASA prices can be attributed to the consistent rise in prices of key feedstocks such as Acrylonitrile, Styrene, and Acrylate monomers over the past few months. The surge in demand from downstream overseas markets has prompted suppliers to raise their Ex-quotation prices of ASA this month. This combination of factors has contributed to the overall increase in ASA prices in the global market.

In South Korea, ASA prices have risen in May, while Acrylonitrile saw a 1.12% increase in the feedstock market, and Styrene and Acrylates remained stable. The recent surge in Acrylonitrile, Styrene, and Acrylates prices has supported the rise in ASA production costs. In the Automobile sector, sales decreased by 10.6% year-on-year and 10.55% month-on-month, with 116,522 units sold in May. Despite this, the Manufacturing Purchasing Manager Index surged, indicating growth above the threshold limit. Suppliers are responding to market demands by continuously increasing their ex-quotation prices, leading to the ASA price surge this month.

In the US market, ASA prices witnessed a significant surge this month, driven primarily by heightened prices from major exporter South Korea. However, contrasting this, Acrylonitrile and Styrene prices experienced decreases of 2.14% and 8.33%, respectively, while Acrylate monomer prices surged notably. Despite these fluctuations, the feedstock market in South Korea maintains its upward trajectory, reinforcing the ASA price surge affecting overseas exporting prices. In the automotive sector, May saw a robust 8.8% increase in new vehicle sales from April, though it marked a 5.0% decline from May 2023. Manufacturers expanded production at a solid pace, with growth accelerating compared to April. However, the Institute for Supply Management's manufacturing purchasing managers index for May fell slightly to 48.7 from 49.2 in April. Additionally, construction spending fell unexpectedly for a second consecutive month in April, primarily due to declines in non-residential activity, though there was some improvement in single-family home building.

According to ChemAnalyst forecasts, the price of ASA is expected to demonstrate bullish trends in the upcoming sessions. This expectation is primarily attributed to ongoing bidding activities from suppliers in response to prevailing market conditions. Anticipated surges in feedstock prices are likely to exert upward pressure on ASA prices. These key factors are anticipated to influence the pricing dynamics of ASA in the forthcoming sessions, suggesting a potential uptick in prices.