For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Acrylonitrile Butadiene Styrene (ABS) market in the North American region experienced a stable pricing environment, as the demand and supply remained balanced throughout this quarter.
The US ABS market was influenced by factors such as balanced demand and supply dynamics, steady production rates, and stable feedstock prices. The USA exhibited the most significant price changes, with fluctuations driven by reduced production rates, higher export selling costs, and the impact of natural disasters like Hurricane Francine.
Moreover, compared to the previous quarter in 2024, prices remained unchanged, indicating a period of price stability. The price comparison between the first and second half of the quarter also showed no significant changes, further highlighting the stable pricing trend. As Q3 2024 came to a close, the price of ABS Natural Grade in the USA stood at USD 1883/MT, DEL Texas in the last week of the quarter, underscoring the continued stability in the market despite various external factors influencing pricing.
APAC
In the quarter ending September 2024, the Acrylonitrile Butadiene Styrene (ABS) market in the APAC region experienced a period of marginal decline in prices. This trend was primarily influenced by several significant factors, including weak demand in key sectors such as automotive and home appliances, an adequate supply of ABS in the market, and paused trading activity. From the ABS demand perspective, As we enter August 2024, there has been no improvement in the export demand for ABS in the APAC region. Some home appliance manufacturers are continuing to display need-based demand scenarios in the domestic market, and downstream factories are operating at low capacities, focusing mainly on necessities and showing weak stocking activity. While some traders are attempting to sell at lower prices amid heightened competition in the regional market, overall market momentum remains sluggish in the ABS industry. The overall supply chain disruptions, especially due to heavy rains, further tightened the ABS supplies for the time being. Specifically focusing on Japan, the market witnessed the most substantial price changes during the quarter. There was a slight uptick of 1.6% from the previous quarter in 2024. The price comparison between the first and second half of the quarter showed a decrease of 1%. The quarter-ending price for ABS Injection Moulding FOB Tokyo in Japan was recorded at USD 1450/MT in the last week of September 2024, reflecting the prevailing negative pricing environment in the region.
Europe
In the third quarter of 2024, the European Acrylonitrile Butadiene Styrene (ABS) market witnessed a stable trend in prices, driven by various factors. The quarter began with a surge in production input costs, particularly raw materials and energy, prompting buyers in the Eurozone to seek price concessions. Additionally, fluctuating upstream crude oil prices added to the market uncertainty, while surging container shipping costs from Asia further complicated the pricing landscape. Despite seasonal demand fluctuations and economic uncertainties, market participants closely monitored potential price increases throughout the quarter. In Germany, the market experienced the most significant price changes, reflecting overall trends in the region. The quarter exhibited a 1% increase from the previous quarter. The price comparison between the first and second half of the quarter showed a 1.1% increase. Ultimately, the quarter-ending price for ABS Compounding Grade FD Hamburg in Germany stood at USD 2115/MT in the last week of September 2024 and signaled a slow upward trajectory in the pricing environment.
South America
In the quarter ending September 2024, the Acrylonitrile Butadiene Styrene (ABS) market in South America experienced a significant downward trend in prices, heavily influenced by various factors. One key factor contributing to the price decline was the persistent oversupply of ABS in the market, leading to increased competition and price pressures. Additionally, weakening demand from downstream industries, such as automotive and home appliances, further exacerbated the pricing challenges faced by ABS producers in the region. The ongoing global economic uncertainties and trade tensions also played a role in dampening ABS prices, as market participants navigated through volatile conditions. Brazil, in particular, witnessed the most substantial price changes within the region during Q3 2024. The ABS pricing landscape in Brazil reflected a consistent negative trend. Despite a slight uptick of 2% from the previous quarter in 2024, the overall price comparison between the first and second half of the quarter showed a 2.2% decrease. The quarter-ending price for ABS High Injection Moulding CFR Santos in Brazil stood at USD 1720/MT in the last week of September 2024, marking a continuation of the prevailing downward sentiment in the pricing environment.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Acrylonitrile Butadiene Styrene (ABS) market in North America exhibited notable stability, particularly in the latter half of the quarter, driven by several significant factors that shaped its pricing landscape. During this period, demand and supply chains were balanced, playing a crucial role in maintaining price stability.
The automotive and home appliance industries, key downstream sectors, showed moderate demand, contributing to the equilibrium in ABS pricing. Expected seasonal fluctuations, such as the Atlantic hurricane season, led downstream market participants to adopt cautious procurement strategies, ensuring their stockpiles were sufficiently padded against potential disruptions. Additionally, the stable trend in feedstock Styrene prices provided further protection against significant price volatility in the ABS market.
In the USA, which saw the most pronounced price activities during this period, ABS prices remained fundamentally stable. Prices remained consistent between the first and second halves of the quarter, with only a 0.2% change, underscoring a steady pricing environment. The quarter concluded with ABS Natural Grade priced at USD 1881/MT, DEL Texas. This reflected a stable sentiment in the ABS market, indicating neither positive nor negative volatility but rather an equilibrium maintained by balanced supply-demand dynamics and prudent inventory management.
APAC
In Q2 2024, the Acrylonitrile Butadiene Styrene (ABS) market in the APAC region has experienced significant price increases, influenced by several critical factors. The most notable contributors to rising prices have been elevated production costs, driven by soaring crude oil prices and higher feedstock Styrene costs. Additionally, logistical challenges such as limited container availability and increased freight rates have compounded supply constraints, leading to tighter market conditions. A resurgence in regional demand, particularly from the automotive and home appliance sectors, has further pressured prices upward. In Japan, the ABS market has seen the most pronounced price changes. The overall trend for the quarter has been bullish, with prices demonstrating a clear upward trajectory. This increase can be attributed to a combination of steady demand, especially from the automotive industry, and constrained supplies due to higher input costs and logistical bottlenecks. Seasonality also played a role, with increased purchasing activities observed during the summer months. The first half of the quarter witnessed a 2.5% price rise compared to the latter half, indicating a consistent upward trend throughout the period. The quarter ended with ABS Injection Moulding prices at USD 1478/MT FOB Tokyo, highlighting a distinctly positive pricing environment driven by robust demand and persistent supply challenges.
Europe
In Q2 2024, the Acrylonitrile Butadiene Styrene (ABS) market in Europe exhibited a persistent yet moderate upward trend, largely influenced by a combination of supply constraints, heightened production costs, and fluctuating feedstock prices. The prevailing disruptions in supply chains, coupled with strategic production cutbacks by ABS manufacturers, have exacerbated the scarcity of the material. Additionally, increased operational expenses due to rising feedstock Styrene prices and stable demand from the home appliance sector have collectively driven the ABS pricing environment upward. Focusing on Germany, the market has experienced the most pronounced price changes within the region. Examining the entirety of Q2 2024, the ABS market witnessed a subtle price rise of 0.7% between the first and second half of the quarter, indicative of a gradually firming market. The seasonality factor played a crucial role, with increased demand from the home appliance sector, consistent with typical seasonal cycles. This incremental yet consistent rise is reflective of a balanced market condition, where slight demand improvements are met with constrained supply, fostering a stable to positive pricing environment. Concluding Q2 2024, the price of ABS Compounding Grade FD Hamburg stands at USD 2115/MT, marking a steady culmination of the quarter’s upward trend and affirming the positive pricing momentum despite underlying volatility.
South America
In Q2 2024, the Acrylonitrile Butadiene Styrene (ABS) pricing in the South American region witnessed a significant uptrend, driven by a confluence of factors. The quarter marked a notable increase in ABS market prices, primarily influenced by tightened supplies and robust downstream demand. The supply-side constraints stemmed from reduced production rates in key exporting nations, leading to heightened import costs. This, coupled with escalating freight charges and limited stock availability, propelled ABS prices upwards. In Brazil, which experienced the most substantial price fluctuations, the quarter showcased a clear correlation between supply shortages and price hikes. Notably, the quarter's pricing environment reflected a positive sentiment, with ABS prices, culminating in the latest quarter-ending price of USD 1779/MT for ABS High Injection Moulding CFR Santos in Brazil. The price comparison between the first and second half of the quarter further emphasized the consistent upward trajectory in ABS pricing, highlighting a stable and optimistic market outlook. The downstream automotive industry production growth momentum was disrupted in May due to the flooding in Rio Grande do Sul. Factories in that state and other regions slowed or halted operations, highlighting the strategic importance of several suppliers in Rio Grande do Sul. However, the daily average of sales and employment levels remains encouraging for the sector.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the ABS market in North America continued to demonstrate an upward trend. There were no reported plant shutdowns, and the demand in downstream industries remained unchanged.
The market experienced some fluctuations, particularly in the USA as the unfavourable weather conditions, including fog and wind, disrupted terminal operations, leading to shortages and global production delays. As a result, ABS prices consistently increased throughout the first quarter of 2024. This upward trend has continued into the latter part of the quarter, fuelled by a consistent rise in feedstock Styrene prices. To address margin challenges, numerous US ABS suppliers have suggested raising prices to align with the surge in monomer costs.
Moreover, the USA market witnessed an upward trend in ABS prices due to increased demand in the home appliance sector and the seasonal elevation in procurement sentiments. Additionally, rising costs, producers' margin recovery goals, and inadequate supplies are expected to contribute to the bullish trend in the future. At the end of Q1 of 2024, the price of ABS Natural Grade DEL Texas in the USA was reported at USD 1796/MT.
APAC
In the first quarter of 2024, there was a notable surge in the APAC region's Acrylonitrile Butadiene Styrene (ABS) market, characterized by a tight supply-demand balance and surging prices. Several key factors contributed to this situation, including limited stock availability, high input costs, and plant turnarounds. Japan, in particular, experienced significant changes in ABS prices, reflecting a bullish market and moderate demand. By the end of the quarter, ABS injection moulding FOB Tokyo in Japan had reached USD 1370/MT, marking a 6% increase from the first half. Plant shutdowns had played a pivotal role in this market dynamic, leading to reduced inventories and production rates. Various disruptions, including force majeure situations and lower run rates, had further exacerbated the tight supply-demand balance and subsequent price hikes. For instance, in March 2024, PetroChina Jilin Petrochemical Company underwent a 21-day maintenance turnaround in Guangdong Province, affecting the market. Additionally, the price movement had been supported by increased upstream material costs, contributing to overall cost support. Consequently, the APAC ABS market remained bullish throughout the first quarter of 2024, with the potential for further short-term price increases due to heightened demand and stabilized upstream material performance.
Europe
During the first quarter of 2024, the ABS market experienced an increase in Europe in the face of various challenges that impacted the supply and availability of ABS. These challenges included supply chain shortages, logistical issues, and uncertainties in the market. The rising input costs and a shortage of pre-procured stocks also contributed to the disruption in ABS prices throughout the quarter. During the first quarter of 2024, the German ABS market experienced moderate demand and limited supplier availability, prompting a push for price increases. This trend had been consistent, driven by rising feedstock Styrene and Butadiene prices. Upstream oil markets had faced geopolitical tensions, including infrastructure attacks in Russia and a Houthi strike in the Red Sea, leading to concerns about global tanker traffic disruptions and subsequent crude oil price increases. In February, ABS prices had stabilized due to constrained stock availability and rising input costs, despite insufficient downstream procurement and elevated crude oil values. The regional ABS market had begun the year steadily, with prices unchanged amidst supply concerns. Market participants had anticipated significant price hikes as they monitored the situation. Global supply chains had faced uncertainty due to the conflict in the Red Sea, potentially affecting imports into the European ABS market, which relied on this route. Thus, the ABS trend in the first quarter remained consistently northward in the Eurozone.
South America
In the quarter ending March 2024, Brazilian ABS prices continued to rise due to increased costs of imports from South Korea and Taiwan, driven by higher feedstock Styrene prices and limited stock availability in exporter markets. Despite challenges in securing international orders, there was some improvement in demand from the downstream home appliance industry. However, external sales had declined, albeit at a slower rate than in February. ABS supply at the end of the quarter had been affected by reduced production rates in South Korea and Taiwan, with major participants undergoing maintenance turnarounds, leading to further limitations in the Brazilian market. Additionally, freight rates from Asia to Brazil had decreased significantly due to delays in container returns caused by circumstances in the Red Sea. Moreover, upstream cost pressures had increased as feedstock Styrene prices rose, prompting exporters to pass the burden onto regional buyers. Demand from the downstream home appliance and automotive industries had been influenced by a moderate outlook and weak economic conditions. Vehicle registrations in the first quarter of 2024 had shown a notable increase compared to the previous year, although March had seen a decline due to fewer working days. Overall, the ABS industry in the first quarter of 2024 experienced balanced demand amidst various challenges, including supply chain disruptions and economic uncertainties. Despite the price increases and supply constraints, there were signs of stabilization in demand, particularly in the domestic market, indicating resilience in the face of market fluctuations.
For the Quarter Ending December 2023
North America
The Acrylonitrile Butadiene Styrene (ABS) market in North America was majorly weak in Q4 of 2023 due to ample supplies and subdued demand within the automotive sector.
According to the National Automobile Dealers Association (NADA) of the USA, November 2023 saw a seasonally adjusted annual rate (SAAR) for new light-vehicle sales at 15.3 million units, marking the second successive month of SAAR declines. The combined inventory of new light vehicles, inclusive of units in stock and transit, started November at 2.15 million, progressively increasing throughout the month. By the end of the month, the total new light-vehicle inventory had surged to 2.33 million units, indicating an 8.3% month-over-month increase and reaching a 20-month peak.
With the expansion of inventory levels in the national automotive industry, downstream demand for ABS experienced a notable decline throughout this quarter. The surplus in supply worsened the bearish conditions in the ABS market. Additionally, external factors like the contraction in manufacturing activities and subdued domestic demand have been instrumental in shaping ABS pricing dynamics since the conclusion of October 2023, and this trend has persisted into the fourth quarter significantly.
Asia
The Acrylonitrile Butadiene Styrene (ABS) market in the APAC region witnessed an overall bearish trend during Q4 of 2023, with moderate to high supply and weak demand fundamentals. The market experienced muted inquiries in the regional market due to a destocking strategy adopted by market players towards the year-end in December 2023. The ABS prices in Japan recorded the maximum change, with a decline of 4.9% during November 2023, backed by weak regional market transactions and high levels of produced stocks. The market demand in Japan remained low during Q4, with a marginal need-based demand in the downstream automotive industry. The latest price of ABS Injection Moulding FOB Tokyo in Japan for Q4 2023 is USD 1266/MT. The plant shutdowns in the region, such as Taita Chemical at Kaohsiung and Formosa Chemicals and Fibre Corp. at Mailio, operating at lower rates, also impacted the market sentiments. Simultaneously, domestic ABS prices in China have experienced a decline, mirroring the downward trend observed in import ABS prices in both markets. The sustained decline has prompted the introduction of competitive offers for Chinese materials in Southeast Asia. Additionally, the upstream crude oil market is undergoing noticeable volatility, and the decreasing prices of feedstock styrene, hitting three-month lows, have further dampened market sentiment. The combination of cost erosion and a persistent downturn in downstream demand has kept sellers under pressure to reduce inventories, leading to reductions in ABS prices.
Europe
The Acrylonitrile Butadiene Styrene (ABS) market in the Europe region experienced a bearish trend in Q4 2023 (October to December) due to multiple factors. Firstly, the slow movement of downstream automotive industry consumption and ample availability of inventories resulted in a dip of 4.2% and 3.6% in the ABS prices in the UK and German markets, respectively. Secondly, the elevated inventory levels resulted in narrow profit margins for ABS producers, prompting sellers to temporarily reduce profit margins and adjust prices amid uncertainty in the downstream market conditions. Thirdly, the destocking sentiments among market players weighed on the price momentum of the product. Germany witnessed the maximum changes in the pricing trend, with a bearish market situation and high to moderate supply levels. The ABS prices in Germany saw a decline of 43% from the previous quarter, with a price percentage comparison of -7% between the first and second half of the quarter. The price percentage comparison of the current quarter to the same quarter of the last year was -45%. The latest price of ABS Compounding Grade FD Hamburg in Germany for Q4 2023 is USD 1619/MT.
