ABS prices decreased with a downturn experienced in Europe

Acrylonitrile Butadiene Styrene (ABS) prices declined in the European market during the last weeks of December 2023. The prices contracted due to the unstable rates of the feedstocks and subdued demand. The market was influenced by the reduction in the rates of styrene, butadiene and acrylonitrile (ACN) that serve as the primary feedstock for ABS. Moreover, the constant low demand weakened the spot prices for ABS in Europe, affecting the global rates as well.

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The decline in the rates of ABS was a result of various factors. It was primarily attributed to the contraction in the prices of styrene, which plays a crucial role in the production of ABS on a large scale. Combined with styrene, the rates of other feedstocks, including butadiene and acrylonitrile, also dropped in the same month, i.e., December 2023, which altogether affected the price trends, resulting in a sluggish market for ABS in Europe. The reduction in rates ultimately led to a low demand from the downstream industries. Buyers preferred minimal volumes in the purchases during the month of December, with a mindset to further reduce the inventories as the year concludes.

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Moreover, the ongoing imports from the Asian market, while holding an extensive supply of ABS in Europe, contributed to the stockpiling of ABS in Europe. This situation led to an increase in the availability rate during December 2023. The state of oversupply and low demand resulted in drastic reductions in the rates of ABS throughout the month.

According to Procurement Resource, the global price trend of ABS was uncertain throughout the final weeks of December 2023. The price trends in the European market remained low due to various factors. The low costs of feedstocks in the market, along with a reduction in demand, contributed to a sluggish trend for ABS in Europe. Moreover, the situation of stockpiling as a result of extensive importing from Asian markets led to a notable decline in the rates of ABS in the European market. The market is anticipated to remain fluctuating as a result of the uncertain supply-demand equation in the upcoming months as well.