EU ABS price drop in March amid poor demand, according to GC Intelligence assessments. European acrylonitrile butadiene styrene (ABS) prices experienced a decrease in March.
The decrease represents ongoing competitive imports, low demand, and an unexpected dip in the styrene monomer contract price.
The market has been struggling to recover from the loss in demand seen in recent months.
The price forecasts have been adjusted downwards to reflect the weaker market conditions.
Demand has marginally increased since its low point at the end of last year, but growth has been hindered by various factors.
Some of these include flat activity levels in most markets and low consumer confidence.
Despite automotive sector growth, other industries like construction and electronics face negative market conditions.
Concerns about another banking crisis could further suppress demand for ABS plastic.
In the short term, a supply deficit could arise if demand bounces back, but there are currently no signs supporting this view.
The market is expected to face ongoing economic pressures from inflation and energy.
This should continue to impact consumer spending and hinder any recovery during the first half of the year.