European Acrylonitrile-Butadiene-Styrene Market Experiences the Price ReductionMay 30th, 2017
The experts forecast a drop in the contract price for acrylonitrile-butadiene-styrene (ABS) by 150 -190 euro per tonne in the European market. After the considerable price fall for styrene in the current month, European market players initiated the active negotiations on the May-drop in the contract price for ABS among the stakeholders.
According to the major players, the situation in the market was stable including the growth in demand and interest for ABSs among the customers. Within the last few months price, quotations for this material have been increasing steadily. However, some consumers have marked time at the market with the strategy to place the order for ABS after the price for styrene drops even more. Others explain that they have reduced the demand due to the volatility in the market observed for the last few months.
The analysts predict the demand for ABS will be affected in the following due to surge pricing and the price quotation drop. Moreover, the consumers are disposed to change the decision in accordance with the styrene price move. According to some experts, the situation got even worse after Ineos Styrolution, a leading European producer, had closed one of the ABS production lines in Antwerpen, Belgium due to particular engineering problems. However, other analysts do not consider that this is a key factor for the demand fluctuations at the market.
Today European as well as Asian producers supply ABS in sufficient volumes and offer the clients to place heavier orders for this material. April contract prices for ABS were considerably lower than March quotations. After the price decline for styrene in April, the price cap for ABS was agreed at 90 -1650 euro per tonne depending on the brand and payment terms.