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ABS: 3 MAIN POINTS ON SUPPLY

July 3, 2019
  1. The European Acrylonitrile Butadiene Styrene (ABS) market oversupply persists. Since demand slowed down recently, buyers are running high stocks. Demand looks set to continue to contract in the summer. So, the market will likely remain oversupplied and margins under pressure.
  2. There is ongoing and persistent pressure on European supply from competitive Asia imports. The situation in Asia is worse than in Europe. ABS margins in the region dropped back to negative territory. Competition is fierce. Asia sellers are dropping prices to attract sales in an already weak European market.
  3. Margins contracted in June after prices decreased more than costs. This followed another contraction in May. As demand remains weak in July, producers could see yet another fall in margins.

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