Category

Countries

ABS Prices in the European Market Stabilize Amid Production Delays
ABS Prices in the European Market Stabilize Amid Production Delays

ABS Prices in the European Market Stabilize Amid Production Delays

  • 05-Jun-2024 5:02 PM
  • Journalist: Bob Duffler

At the start of June 2024, Acrylonitrile Butadiene Styrene (ABS) prices in the European market have remained stable. This stability comes amidst unchanged demand and despite production delays caused by adverse weather conditions. Despite earlier optimistic expectations, ABS sellers have been unable to achieve any margin expansion. Market participants reported stable offers for additional quantities, indicating reduced sales pressure among regional sellers. The accumulation of stock in the ABS industry has been influenced by both low demand and poor export sales. Furthermore, a significant decline in Styrene prices has eased cost pressures on the ABS market, contributing to price stability during this period.

Trinseo recently announced a decline in the Polystyrene prices in parallel with falling Styrene prices, further pausing the ABS price momentum in the German market amidst no significant improvement in the downstream demand from the automotive and home appliance sector.

From the Eurozone supply chain perspective, In a severe weather event, heavy rain has caused extensive flooding in southern Germany, prompting evacuations and significantly impacting already-strained supply lines through central Europe. This surge has halted transportation along key sections of the River Rhine, a vital industrial shipping route for the continent.

German authorities have reported moderate to severe flooding across the southern regions and along much of the Rhine. This disruption is expected to persist for several more days, exacerbating logistical challenges in the region. Heavy storms have doubled the water levels along parts of the Rhine within a few days, leading to tragic fatalities. The situation remains critical as authorities continue to monitor the water levels and manage the evacuation and relief efforts in the affected areas. As a result, the ABS supply-demand dynamics have been significantly disrupted for the time being and market players opted to stabilize the ABS price trend in the European region.

Unsupportive supply-demand dynamics were cited as the cause of May's declines, as accumulating stock levels put pressure on ABS sellers and intensified the competition for limited demand. Participants noted aggressive spot offers for additional quantities, underscoring the sales pressure faced by regional sellers.

As per the ChemAnalyst, the ABS price trend is expected to decline in the European market during June 2024 as the feedstock Styrene prices are likely to remain southward. Moreover, weak downstream procurement sentiments in the automotive industry may prompt a bearish market situation in the ABS industry. Furthermore, Brent crude oil prices are projected to ease and affect the ABS production costs for a short period.

Related News

US ABS Prices exhibit a Pause Due to Balanced Demand-Supply in Early June 2024
  • 11-Jun-2024 4:56 PM
  • Journalist: Motoki Sasaki
Tepid Demand Keeps the ABS Price Surge Under Check in Asia
  • 28-May-2024 2:33 PM
  • Journalist: Bob Duffler
European ABS Market Sees Price Stability Despite Raw Material Plant Closures
  • 10-May-2024 2:53 PM
  • Journalist: Jacob Kutchner
Asian ABS Market Sustains Price Uptrend in the Mid-April 2024
  • 22-Apr-2024 3:34 PM
  • Journalist: Stella Fernandes