Fall in Acrylonitrile butadiene styrene imports reduces avails in European supplies

16-Feb-15

European acrylonitrile butadiene styrene (ABS) availability has dramatically decreased as imports from Asia lost competitiveness amid a weak euro and as greater volumes were absorbed there, as per sources in Platts. As per a producer, there is no shortage in the market, but since everyone is running at full rates, 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. Spot prices reacted to tightening market and have been rising over the past three weeks already. 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.