European acrylonitrile butadiene styrene availability has dramatically decreased as imports from Asia lost competitiveness on the back of the weak euro and as greater volumes were absorbed there, sources said.
“Everyone is running at full rates now,” a producer said. “There are no shortages, but the market is really tight. Asian imports typically hold around 30% of the European market. But these imports are no longer there on the combination of two factors: improvement in Asia itself and weak euro.”
February has been the strongest month in terms of demand in the past six to nine months and producers either have already closed their books or were about to do so, sources said.
Expectations of feedstock price rises in March, following an increase in crude oil prices, also acted as a trigger for pre-buying.
“Some customers are still desperately looking for volumes this month,” the same producer said.
Spot prices reacted to tightening market and have been rising over the past three weeks already.
Natural grade ABS spot price rose to Eur1,458/mt ($1,663/mt) FD NWE this week, up from last week’s Eur1,408/mt and Eur1,380/mt at the end of January, Platts data showed.
In Asia, prices have strengthened over the past few weeks, with CFR China price assessed at $1,525/mt Wednesday, leaving sufficient spread to bring product into Europe.
However, with the molecules not arriving for six to eight weeks, consumers preferred to buy material nearby.
Supplies from South Korea, Taiwan and Thailand account for around 90-93% of EU’s imports of ABS, according to Eurostat data, and meet around 30% of the European demand.
– Platts.com
