In Q1 2024, the global Acrylonitrile Butadiene Styrene (ABS) market experienced a bullish trend with prices rising by 11% from Q4 2023, fuelled by rising feedstock prices for Acrylonitrile, Butadiene, and Styrene, alongside increased freight rates and higher global capacity utilization. A 7.4% increase in container port volumes and a 10.4% rise in container ship supply further drove freight rates. Additionally, congestion at major Asian ports, equipment shortages, and the rerouting of vessels around southern Africa exacerbated the supply-demand imbalance, significantly affecting the Asian market and driving up ABS prices. Festivals like the Lunar New Year also drove this bullish trend, as numerous factories in Asia either shut down or operated at reduced capacity, leading to a scarcity of products in the global market.
In Q2 2024, global ABS demand rose due to rising demand in the automobile and construction sector. Also, the feedstock Styrene and Acrylonitrile prices continued to increase pushing up ABS prices further. The increase in prices in the APAC region, a major hub for ABS exports, created a ripple effect on prices in importing countries.
In the first month of Q3 2024, the product prices exhibited a mixed trend. In Europe, prices moved upward due to increased production costs and growing demand from the downstream automotive industry. Conversely, in the South Korean market, ABS prices declined due to limited domestic demand. During Q3 2024, in South Korea, prices hovered around USD 1,485/MT (FOB Busan).
Looking forward to Q4 2024 and beyond, despite the current domestic demand decline, crude oil prices are expected to increase, tight market conditions are expected to persist contributing to supply constraints and price volatility.