WILL THE US ABS MARKET BUCKLE TO GLOBAL PRESSURES? By Adam Yanelli
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Will the US ABS mArket buckle to global pressures
by adam Yanelli
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
By AdAm yAnelli decemBer 2019
inSiGHtWill the us abs marketing buckle to global pressures
The US acrylonitrile-butadiene-styrene (ABS) market continues to be pressured by soft demand and long supply with additional headwinds from aggressively priced material from Asia
Lower-priced imports from Asia continue to influence pricing in the US market as the US-China trade war and soft domestic demand in the Chinese market - which is the typical destination for much of Asia ABS production - have forced Asian suppliers to look for new destinations for their material
End-of-year destocking activity is also putting downward pressure on prices as producers tend to offer deals in order to lower inventories for tax purposes
US November ABS prices as assessed by ICIS on Wednesday ticked lower by 1 centlb ($22tonne) as decreases in feedstocks styrene and butadiene contracts offset a slight increase in acrylonitrile (ACN) contracts
ICIS assessments for US ABS are strictly formula-based and tied to upstream price movements
upstreamABS is about 60 styrene so styrene costs generally drive price direction
Deteriorating downstream demand and long supply have combined to push US styrene spot prices to multi-year lows and amid a global manufacturing slowdown pressure could be growing on producers to reduce operating rates
iciS SUpply And demAnd dAtA Service
get crucial data on the global petrochemical supplY-demand frameWork
Covering over 100 petrochemical commodities across 160 countries with historical data from 1978 and forecast available up to 2040 this powerful data and analytics service helps you to
n Identify evaluate and optimize opportunities
n Identify and manage financial or investment risks
n Validate commercial and growth strategies
learn more about icis supply and demand service
30
40
50
60
70
80
90
100
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140
05-Dec-2
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01-Jan-2019
16-Jan-2019
01-Feb-2019
20-Feb-2019
06-Mar-2
019
27-Mar-2
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10-Apr-2
019
01-May-2019
22-May-2019
05-Jun-2019
26-Jun-2019
10-Jul-2
019
31-Jul-2
019
14-Aug-2019
01-Sep-2019
18-Sep-2019
02-Oct-
2019
23-Oct-
2019
06-Nov-2019
27-Nov-2019
US
CTS
lb
ABS Inj Medium FD US Assessment Bulk Domestic 0-4 Weeks Full Mahellip
Acrylonitrile DEL US Contract Price Assessment Domestic Contract hellip
Butadiene FOB USG Contract Reference Price Contract Reference Mhellip
Styrene FOB US Contract Price Assessment Contract Month Contracthellip
us abs price historY
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
US October styrene contracts which settle a month in arrears fell on Friday edging lower by 05 centslb ($11tonne)
Formula-based US October domestic ACN contracts fell slightly from September tracking a lower settlement for October propylene contracts
US November butadiene (BD) contracts settled lower from October amid ongoing supply length and steady-but-
soft demand
pressure from importsUS September ABS imports fell by almost 11 from the same month a year ago and imports are down by 14 year to date according to the ICIS Supply and Demand Database
While import volumes are down the majority of material has been competitively priced
A distributor said this week it expects the threat of imports to keep downward pressure on domestic prices
South Korea is the top source of imported material so far this year followed by Mexico and Taiwan
ABS is the largest volume engineering thermoplastic resin and is used in automobiles electronics appliances and recreational products
North American ABS producers include A Schulman INEOS Styrolution SABIC and Trinseo
Click here to view related stories and content on the ICIS US-China trade war topic page
140000
120000
100000
80000
60000
40000
20000
0
Sep 18 Aug 19 Sep 19 2018 2019
Tonn
es
Monthly Year to date
us abs imports
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
By AdAm yAnelli decemBer 2019
inSiGHtWill the us abs marketing buckle to global pressures
The US acrylonitrile-butadiene-styrene (ABS) market continues to be pressured by soft demand and long supply with additional headwinds from aggressively priced material from Asia
Lower-priced imports from Asia continue to influence pricing in the US market as the US-China trade war and soft domestic demand in the Chinese market - which is the typical destination for much of Asia ABS production - have forced Asian suppliers to look for new destinations for their material
End-of-year destocking activity is also putting downward pressure on prices as producers tend to offer deals in order to lower inventories for tax purposes
US November ABS prices as assessed by ICIS on Wednesday ticked lower by 1 centlb ($22tonne) as decreases in feedstocks styrene and butadiene contracts offset a slight increase in acrylonitrile (ACN) contracts
ICIS assessments for US ABS are strictly formula-based and tied to upstream price movements
upstreamABS is about 60 styrene so styrene costs generally drive price direction
Deteriorating downstream demand and long supply have combined to push US styrene spot prices to multi-year lows and amid a global manufacturing slowdown pressure could be growing on producers to reduce operating rates
iciS SUpply And demAnd dAtA Service
get crucial data on the global petrochemical supplY-demand frameWork
Covering over 100 petrochemical commodities across 160 countries with historical data from 1978 and forecast available up to 2040 this powerful data and analytics service helps you to
n Identify evaluate and optimize opportunities
n Identify and manage financial or investment risks
n Validate commercial and growth strategies
learn more about icis supply and demand service
30
40
50
60
70
80
90
100
110
120
130
140
05-Dec-2
018
01-Jan-2019
16-Jan-2019
01-Feb-2019
20-Feb-2019
06-Mar-2
019
27-Mar-2
019
10-Apr-2
019
01-May-2019
22-May-2019
05-Jun-2019
26-Jun-2019
10-Jul-2
019
31-Jul-2
019
14-Aug-2019
01-Sep-2019
18-Sep-2019
02-Oct-
2019
23-Oct-
2019
06-Nov-2019
27-Nov-2019
US
CTS
lb
ABS Inj Medium FD US Assessment Bulk Domestic 0-4 Weeks Full Mahellip
Acrylonitrile DEL US Contract Price Assessment Domestic Contract hellip
Butadiene FOB USG Contract Reference Price Contract Reference Mhellip
Styrene FOB US Contract Price Assessment Contract Month Contracthellip
us abs price historY
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
US October styrene contracts which settle a month in arrears fell on Friday edging lower by 05 centslb ($11tonne)
Formula-based US October domestic ACN contracts fell slightly from September tracking a lower settlement for October propylene contracts
US November butadiene (BD) contracts settled lower from October amid ongoing supply length and steady-but-
soft demand
pressure from importsUS September ABS imports fell by almost 11 from the same month a year ago and imports are down by 14 year to date according to the ICIS Supply and Demand Database
While import volumes are down the majority of material has been competitively priced
A distributor said this week it expects the threat of imports to keep downward pressure on domestic prices
South Korea is the top source of imported material so far this year followed by Mexico and Taiwan
ABS is the largest volume engineering thermoplastic resin and is used in automobiles electronics appliances and recreational products
North American ABS producers include A Schulman INEOS Styrolution SABIC and Trinseo
Click here to view related stories and content on the ICIS US-China trade war topic page
140000
120000
100000
80000
60000
40000
20000
0
Sep 18 Aug 19 Sep 19 2018 2019
Tonn
es
Monthly Year to date
us abs imports
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
US October styrene contracts which settle a month in arrears fell on Friday edging lower by 05 centslb ($11tonne)
Formula-based US October domestic ACN contracts fell slightly from September tracking a lower settlement for October propylene contracts
US November butadiene (BD) contracts settled lower from October amid ongoing supply length and steady-but-
soft demand
pressure from importsUS September ABS imports fell by almost 11 from the same month a year ago and imports are down by 14 year to date according to the ICIS Supply and Demand Database
While import volumes are down the majority of material has been competitively priced
A distributor said this week it expects the threat of imports to keep downward pressure on domestic prices
South Korea is the top source of imported material so far this year followed by Mexico and Taiwan
ABS is the largest volume engineering thermoplastic resin and is used in automobiles electronics appliances and recreational products
North American ABS producers include A Schulman INEOS Styrolution SABIC and Trinseo
Click here to view related stories and content on the ICIS US-China trade war topic page
140000
120000
100000
80000
60000
40000
20000
0
Sep 18 Aug 19 Sep 19 2018 2019
Tonn
es
Monthly Year to date
us abs imports
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