Global ABS Demand Remains Weak in the Second Half of the Year

Recently, participants in the global Acrylonitrile-Butadiene-Styrene (ABS) copolymer market have had low expectations for the market in the second half of the year, mainly due to weak demand from downstream industries. In Europe and the United States, sluggish automotive demand is dragging down the overall ABS market, while in Asia, tariff issues are of greater concern.

Concerns in the European market remain focused on the automotive industry, with market sentiment remaining pessimistic. An ABS producer told S&P Global Commodity Insights’ Platts: “The automotive industry is performing sluggishly, with no signs of recovery, and some companies expect demand may decline further.” Other downstream sectors such as construction and home appliances are also facing weak demand due to low consumer confidence. Ongoing geopolitical and tariff uncertainties continue to weigh on sentiment in the European ABS market, and spot price reductions have provided limited stimulus to purchasing demand.

A distributor admitted: “There is no visible growth point for ABS demand in Europe. Of course, there is potential for improvement, but part of it depends on how geopolitics affect oil prices. However, costs are not the core issue; consumer spending is key, and currently, multiple uncertainties are suppressing consumption.” Despite the EU having launched anti-dumping investigations against products from Korea and other regions, low-priced ABS from East Asia continues to flow into Europe. Platts data shows that in the first half of 2025, the average ABS price in China and Southeast Asia was $1,320 per ton, nearly $400 lower than the average price of $1,706 per ton in Northwest Europe during the same period.

The US ABS market has also been dragged down by the automotive industry, with demand about 5% lower than normal levels. However, one advantage over Europe is that demand from other sectors has partially made up for this shortfall. A producer stated, "ABS demand has been stable since March. The automotive sector remains weak, but performance in areas such as construction is acceptable."

Market concerns over changes in tariff policies may once again impact upstream styrene prices for ABS. From mid-April to early May, U.S. ABS prices fell nearly 10% in tandem with styrene prices. The sharp drop in Gulf Coast styrene prices was mainly due to the new tariff policy under Trump, which caused Asian supplies to shift towards Europe and South America. Since then, ABS prices have failed to fully recover and have remained around the level seen at the beginning of the year.

Industry insiders generally believe that the demand for US ABS is unlikely to see a significant rebound in the second half of 2025. A producer interviewed stated, "If the situation between Israel and Iran eases and import tariffs remain unchanged, the ABS market will remain stable, with a slight improvement possible next year, but the extent will be limited."

Some market participants expect that if the Middle East conflict continues to cause oil price fluctuations, US ABS prices will rise, supported by raw material costs. A US producer interviewed said, "We have heard some complaints from customers about the price increase announcement." The source added, "These customers haven’t seen pressure from upstream, but acrylonitrile and styrene prices have been rising since July."

The demand for automobiles in the Asian ABS market remains relatively stable, and toy manufacturing provides some support for ABS. However, the demand for home appliances has weakened due to seasonal production cuts and the impact of trade tariffs, leading to a decline in ABS prices. According to Platts data, the price of ABS in China dropped from $1,410/ton on January 8 to $1,295/ton on July 9, while the price in Southeast Asia fell from $1,420 to $1,305 during the same period.

Market participants indicate that if regional trade negotiations fail to make breakthroughs, the Asian ABS industry may face greater pressure on the demand side in the second half of 2025.