Steady Rise in Styrene Acrylonitrile Prices Amid Supply Constraints in South Korea

In recent weeks, the Styrene Acrylonitrile market in South Korea has exhibited a remarkable trend of consistent price increases, concluding in a stable trading price towards the final week of April 2024. Over the course of the month, the price of Styrene Acrylonitrile has risen significantly, pointing out a tight supply situation paired with robust demand from key industrial sectors.

Beginning from the last week of March, Styrene Acrylonitrile was traded at approximately USD 1,440 per metric ton. Subsequently, the price witnessed a steady rise, climbing by nearly 1.4% by the first week of April. This ascending trajectory continued into the second week of April, where prices further increased, marking an overall growth of approximately 2.78% from late March to mid-April.

Despite a momentary stabilization in feedstock prices towards the end of March, the upward pressure on Styrene Acrylonitrile prices persisted due to constrained market availability and sustained demand. The stabilization of prices from mid-April through to the end of the month reflects a market equilibrium where supply tightness meets steady demand from downstream sectors such as the automobile and electronics industries.

ChemAnalyst attribute this price stability of Styrene Acrylonitrile in the latter half of April to a balance achieved between supply constraints and demand from downstream industries, which continued to absorb the increased production without pushing prices downward. This equilibrium indicates a cautious approach from both buyers and sellers in the market, navigating through fluctuations in international trading dynamics and feedstock costs.

The ongoing demand for Styrene Acrylonitrile in South Korea is primarily driven by its critical applications in various industrial processes, especially in sectors where high-performance plastics are essential. Increased regional purchases and robust export orders to other Asian countries have further stimulated this demand, underlining the importance of Styrene Acrylonitrile in the global market for polymers and resins.

As of the last week of April 2024, Styrene Acrylonitrile continues to be traded at USD 1,480 per metric ton in Busan on FOB basis. Market participants remain vigilant, monitoring feedstock price movements and international market trends that could influence the Styrene Acrylonitrile market in the coming months.

In conclusion, the Styrene Acrylonitrile market in South Korea shows a pattern of price increases driven by a combination of limited supply and strong demand, stabilizing at a higher plateau as the industry continues to navigate through ongoing global economic challenges. This trend underscores the strategic importance of Styrene Acrylonitrile in South Korea’s industrial landscape and its significant role in supporting key sectors of the economy.