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ABS: MARGIN RECOVERY IS AT RISK IN 2020

December 10, 2019

LONDON (GC Intelligence) – The Acrylonitrile Butadiene Styrene (ABS) market in Europe will continue to suffer in the short term.

Weak economics and the seasonal downturn should keep the downward pressure on prices.

The forecast assumes that there will be no external shocks to supply

These include supply issues or stronger than expected recovery in demand.

But, any recovery in margins in 2020 is at risk and will probably be small.

Lately, there has been evidence that the slowdown might have bottomed out.

This may mean that in 2020 stagnation is more likely than an ongoing downward trend.

Furthermore, better economic growth could restore some confidence and lead to a recovery.

But this is unlikely if tariff wars and Brexit continue.

As such, competition from imports due to poor demand in Asia should keep fundamentals weak in 2020.

What is more, capacity increases in Europe will surely add more downward pressure on an already battered European ABS market.

NOTE: For price indices, forecasts, and a more in-depth analysis take a look at the GC INTELLIGENCE® Market Reports…

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