LONDON (GC Intelligence) – INEOS Styrolution noted on its website that its Acrylonitrile Butadiene Styrene (ABS) May prices will fall €55/mt from April.
The coronavirus pandemic hit ABS demand and sparked heavy losses in costs so far in Q2, both key drivers of ABS prices.
All raw material prices decreased in May, and there is now a good chance that ABS prices in Europe will slip below €1200/mt according to GC Intelligence data.
Imports will also keep the pressure on the European market. In April prices in Asia posted big losses and volumes booked then will reach Europe in May and June.
Import prices could soon get close to €1000/mt and even reach below this.
Margins will probably not recover in the next few months, even if costs stay low.
Slow demand and cheap imports will ensure that at best margins will stay the same or even fall given the ongoing grim outlooks.
ABS is used to make many goods, including toys, furniture, auto parts, and medical equipment.
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