In Q1 2024, the global Acrylonitrile Styrene Acrylate (ASA) market displayed mixed trends, with prices in South Korea reported at USD 2458/MT, reflecting a slight decrease of 3.6% from the previous quarter. This drop was mainly attributed to subdued demand from key industries, including automotive and construction, alongside an overall reduction in consumer activity post the 2023 peak. However, demand from the packaging sector remained resilient, driven by seasonal factors such as the Lunar New Year, which increased packaging material needs in South Korea and the broader Asia-Pacific region.
In Q2 2024, ASA prices in South Korea further declined to USD 2455/MT, marking a minor decrease of 0.12% from Q1. This was partly due to sustained supply chain issues, including port congestion in Asia and equipment shortages. Additionally, a slowdown in global automotive production, a key end-use market for ASA, contributed to the weakening demand. The broader economic uncertainty, combined with fluctuations in the Styrene feedstock market, exerted additional downward pressure on ASA prices during this period.
By Q3 2024, the ASA market in South Korea saw prices stabilize at USD 2427/MT in July, down 1.1% from Q2. This price trend was largely driven by an abundant global supply of ASA, which outpaced the slowing demand across sectors like construction and automotive. Furthermore, improvements in global freight logistics, including a slight easing of port congestion, allowed for better material flow, contributing to the market’s bearish trend.
Looking ahead to Q4 2024, ASA prices are expected to face upward pressure as demand from the packaging sector increases, especially during the year-end festive season. This heightened demand, combined with potential supply chain disruptions, such as higher freight rates and logistical bottlenecks, could limit supply availability and push prices upward. Additionally, any volatility in Styrene prices could further influence the market, making the final quarter of 2024 one to watch closely.