European Acrylonitrile Butadiene Styrene (ABS) prices continue their climb, trend unlikely to change before Q2 2022

After breaking USD 3000 per MT mark in December, Acrylonitrile Butadiene Styrene (ABS) prices are likely to go further northwards in the first quarter in the European continent. As per ChemAnalyst sources, ABS prices are unlikely to change balance before Q2 2022.

ABS market in Europe has benefited from strong demand from downstream industries including electronics, construction and consumer goods industry. Automotive industry has performed underwhelmingly in the past year, however increased intakes from other industries have kept an upward pressure on the availability of ABS.

Production interruptions across Europe has further exacerbated demand-supply dynamics where supply dynamics remained snug for a major part of the last quarter. Supply of ABS has also been hit by the limited availability of imports from Asia Pacific and North America. ABS production in USA struggled throughout the year caused by limited availability of feedstocks. High freight charges across Mediterranean routes have restricted the Asian exports to reach European shores.

Feedstocks Styrene and Butadiene continue to gain market in the first quarter following the trend of Q4 2021. Strong prices of feedstocks have resulted in increased cost pressure over ABS. Consequently, ABS pricing throughout the last quarter and in the initial weeks of 2022 have maintained an incessant climb.

As per ChemAnalyst, “European ABS market is likely to remain in the uptrend in coming months as demand dynamics are unlikely to change momentum in the first quarter. Automotive sector is unlikely to change balance in the H1 2022 and same has been vindicated by the cancellation of long-term steel contracts by car manufacturers. However, electronics and construction industries are likely to maintain strong growth fundamentals in the upcoming months.”