US Acrylonitrile Styrene Acrylate (ASA) price declined in April amid deteriorating demand

In April, the price of Acrylonitrile Styrene Acrylate (ASA) declined, largely due to lower prices from major exporters like South Korea. Despite rising prices of Acrylonitrile and Styrene in the feedstock market, the Acrylate monomer experienced a notable decline. Decreased demand from downstream sectors like Automobile and Construction contributed to lower ASA consumption, resulting in surplus supply and declining prices. This shift in supply and demand dynamics led to the ASA price decline observed in April.

In the US market, Acrylonitrile Styrene Acrylate (ASA) prices have experienced a notable decrease this month, reaching 2510 USD/MT CFR-Texas. Within the automotive sector, April saw a total of 1,327,976 new vehicles sold, indicating an 8.4% decrease compared to March and a 1.8% decline compared to April 2023. The manufacturing sector faced challenges in April, witnessing a decrease in new orders for the first time in 2024. Despite this, production remained in growth territory due to ongoing work on existing business and hiring continued. Manufacturers responded to lower orders by scaling back purchasing activity, leading to a reduction in inventories. The modest decline in manufacturing new orders in April reflects client caution and hesitancy to commit to new business amid subdued market conditions. In the construction sector, the US Associated Builders and Contractors (ABC) reported the addition of 9,000 jobs, based on data from the US Bureau of Labor Statistics. These various factors have collectively played a significant role in influencing the ASA market in the USA.

In the downstream market, there was a significant decrease in demand for Acrylonitrile Styrene Acrylate (ASA) from the automobile sector, while the construction sector continued to thrive, affecting the demand for ASA in the US market. However, the Dow Jones Construction & Materials (DJUSCN) index indicated robust growth, contributing to the outperformance seen in the construction sector market. During its May meeting, the Federal Reserve opted to maintain the target range for the federal funds rate unchanged at 5.25%-5.50% for the sixth consecutive time. According to the US Bureau of Labor Statistics, the consumer price index in the United States rose by 3.5% year-over-year to 312.332 points in March 2024.

According to ChemAnalyst forecasts, the price of ASA is anticipated to experience a bullish trend. This expectation stems from the anticipated increase in demand of ASA from downstream sectors like Automobile and Construction. Suppliers are expected to accumulate inventories in anticipation of heightened market demand. These factors are likely to influence ASA prices in the US market, driving them upwards.