Prices reached unsustainable levels, raising expectations of a slump in Q2.
ABS prices posted another hike in March after the styrene contract jumped €500/mt, according to GC Intelligence market analysis.
ABS prices in Europe were assessed at an increase of €400/mt on all grades from February to March.
European acrylonitrile butadiene styrene (ABS) buyers suffered yet more misery in March, having to absorb high prices amid tight supply.
Plant issues on styrene and especially acrylonitrile (ACN) has constrained availability in the past few weeks.
The ACN shortage forced producers to dip into the spot market in an attempt to fill the supply gap. As a result, costs increased even further.
However, some partial success meant the acute shortage in February improved in March.
What is more, high prices and margins and the prospect of a sharp correction later in Q2 is likely motivating sellers to place more volumes on the market.
While supply remains tight, the market seems to be moving away from the severe tightness experienced in February.