A very tight market and ongoing good demand provided support.
ABS prices in November jump €100/mt in Europe, according to GC Intelligence price assessments.
The ongoing good demand in all market segments and very tight supply provided support.
The increases from October to November were higher than the increases in costs on most accounts, allowing producers to increase margins for yet another month.
Since 2018 acrylonitrile butadiene styrene (ABS) producers have been losing margins. But in the past few months, this trend has reverted.
As costs continue to go up, another significant price increase is expected in December.
The European ABS market has continued to tighten in November because of a persistent absence of Asian volumes and strong demand.
As the market is changing fast, the price range has widened considerably and is now around €400/mt.
Moreover, some offers, especially for spot volumes have spiked and are above €2000/mt.
November and December are normally slow months for most polymers and including ABS.
But so far it seems the markets are not moving in line with seasonal trends.
An ease in the current upside could come from the increase in ABS capacity in 2021 and an economic fallout.
But for now, there is little evidence of weakness, and ABS prices in Europe remain supported.