Acrylonitrile butadiene styrene

Producers of acrylonitrile-butadiene-styrene (ABS) in the US were trying to hold on to the price increases they proposed in April. Almost all segments of the ABS market showed strength, with the exception of the pipe sector, which is closely linked to the building and construction industry. Rising feedstock costs also supported the ABS price uptrend. In May, cheaper Asian imports exerted pressure on US producers to lower prices of local resins, however, most suppliers continued to hold on to prices.

ABS prices in Europe remained propped up by elevated feedstock costs. A number of downstream buyers reduced orders for ABS as sales of end-products were slow. Lower-priced ABS from Asia prompted European buyers to lobby for a discount from suppliers in the region. However, delays in deliveries from Asia due to production cutbacks resulted in a balanced position for European ABS, which helped to sustain prices, to some degree. With increasing price cuts of Asian resins, buyers in Europe expect prices there to come off in June.

Asian ABS prices increased on the back of buoyant feedstock prices. Resin prices rose above $2,200/tonne CFR (cost & freight) NE Asia in mid-March and were mostly at about $2,050-2,100/tonne CFR NE Asia in April. However, the sell-off in global markets in May caused by the flare-up of the eurozone debt crisis depressed ABS prices in Asia. Expectations that exports of finished goods to the US and Europe will be hit and of a slowing economy in China pushed ABS prices below $1,900/tonne CFR NE Asia in May.