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Acrylonitrile Styrene Acrylate Experiences Price Surge Amidst Mixed Demand and Elevated Feedstock Price
Acrylonitrile Styrene Acrylate Experiences Price Surge Amidst Mixed Demand and Elevated Feedstock Price

Acrylonitrile Styrene Acrylate Experiences Price Surge Amidst Mixed Demand and Elevated Feedstock Price

  • 16-Jan-2024 2:18 PM
  • Journalist: Francis Stokes

The price of Acrylonitrile Styrene Acrylate witnessed an upward trend in December, primarily attributed to the escalated costs of feedstocks, particularly Acrylonitrile and all Acrylate Esters. The Acrylonitrile Styrene Acrylate market is notably influenced by South Korea, which serves as a major producer in this market. The overall demand from importing partners, coupled with the higher prices of feedstocks, has collectively contributed to the surge in the price of Acrylonitrile Styrene Acrylate in December.

In the US market, the price of Acrylonitrile Styrene Acrylate has shown a notable upward trend, experiencing a 12.16% increase in December. Concurrently, the downstream market has displayed positive momentum in US vehicle sales, marking a 3.2% month-on-month rise and reaching 15.8 million units (annualized) in December, surpassing the expected 15.5 million units. Despite these favorable indicators in the automotive sector, the economic landscape in 2023 was significantly shaped by inflation and interest rates, particularly impacting the dynamics of the commercial real estate sector. The overall economic outlook for the US appears positive, propelled by strong performances in the downstream automobile, construction, and real estate sectors. This positive trajectory is fostering expectations of heightened demand for Acrylonitrile Styrene Acrylate in the market.

In the European market, particularly in Germany, the price of Acrylonitrile Styrene Acrylate experienced a significant surge of 12.08% in December. However, the downstream market, especially the automotive sector, faced notable challenges. This was evident in a substantial 23% year-on-year decrease in new car registrations in December. Additionally, the German construction industry encountered difficulties throughout 2023, marked by reduced activity stemming from market uncertainty and elevated interest rates. As 2023 concluded, German construction activity remained in decline, with the sector being influenced by a combination of market uncertainty and high interest rates, as reported by the latest HCOB PMI. Building companies continued to experience retrenchment, with significant reductions in both employment and purchasing activity thereby influencing the demand for the Acrylonitrile Styrene Acrylate. The survey also indicated a pessimistic outlook for 2024, with business expectations remaining historically low. The overall economic conditions in Germany, particularly in the automotive and construction sectors, appear to be posing challenges, impacting both market dynamics and industry performance.

According to ChemAnalyst's anticipation, the price of Acrylonitrile Styrene Acrylate is expected to witness an increase in the upcoming session. This expectation is grounded in the outperformance observed in the US downstream market, although this might be counterbalanced by lower demands from the European Union. Notably, the downstream market in Asian countries is also exhibiting strong performance, influencing the demand for Acrylonitrile Styrene Acrylate positively. Moreover, geopolitical tensions in the Middle Eastern market have resulted in a sharp surge in shipping costs. This factor is anticipated to be a key driver for the expected price increase in Acrylonitrile Styrene Acrylate.

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