ABS Market Stability in January: Price Trends, Supply Shifts, and February Outlook

ABS

05 Feb 20252 Min ReadDaily Market Report

The ABS polymer market remained stable in January, with slight price increases in some grades. Production fluctuated, impacting inventory levels, while raw material prices remained firm. Demand spiked pre-holiday but slowed during the Spring Festival. The market is expected to stabilize in February, with prices influenced by supply adjustments and raw material costs.

Key Highlights

Price Movements: ABS prices saw marginal increases; Ahmedabad rates at ₹1,51,000–₹1,61,500/MT.
Supply Trends: Production fluctuations led to inventory declines, with potential February pressure.
Raw Material Costs: Acrylonitrile and butadiene prices remained high; styrene saw moderate gains.
Market Outlook: Stability is expected, but supply and demand adjustments will dictate future pricing.

ABS Polymer Prices: Marginal Gains Amid Stability

In Ahmedabad, the price of ABS NaturalLotte stands at ₹1,51,000 per metric ton, while Natural Taita is priced at ₹1,47,000 per metric ton. Meanwhile, Black Lotte ABS (SD-0150 (K2007)) is available at ₹1,61,500 per metric ton.
In January, the domestic Acrylonitrile Butadiene Styrene (ABS) market remained stable, with some grades experiencing price increases. The average price of ABS in chinese market 1630 USD/ton, reflecting a marginal price increase of +0.32% compared to the beginning of the month.

Demand Trends: Pre-Holiday Surge & Post-Holiday Recovery

In January, the domestic ABS industry experienced fluctuations in production levels. The industry load initially increased to 76% but later dropped to 73% due to reduced output at the Tianjin Dagu plant. Weekly production averaged around 120,000 tons, with inventory levels slightly declining to 160,000 tons.
Despite this, supply remained ample, supported by strong pre-holiday sales at petrochemical plants. However, in early February, we may see some inventory pressure.
On the cost side, acrylonitrile prices remained firm due to low production rates and limited supply recovery. Butadiene prices stayed high due to tight supply, though an expected capacity increase in February could lead to market stabilization. Styrene prices fluctuated but overall increased, supported by rising crude oil prices and supply adjustments.
Demand followed a cyclical trend, with strong pre-holiday purchases in the household appliance sector but a slowdown during the Spring Festival due to factory closures.
Export demand peaked before the holiday but weakened afterward as buyers had already stocked up. Some terminal enterprises resumed purchases towards the end of January due to rising ABS costs.
Additionally, extended government subsidies for household appliances could support future demand, potentially stabilizing the market in February.

Global Market Updates: Styrene & ACN Price Movements

Styrene Monomer Prices are assessed stable at US$ 1060/- per MT FOB Korea basis.
Trinseo has increased its February Styron & Styron X-Tech GPPS grades Prices and Styron, Styron A-Tech, Styron C-Tech & Styron X-Tech HIPS grades Prices by Euro 70/MT in Europe.
Styrene Monomer Prices opened lower at US$ 1230/-per MT in Europe.
European Acrylonitrile (ACN) contract Prices for February increased by Euro 56/MT from its January settlement levels, rises on Propylene.
Ineos Styrolution has restarted its Styrene Monomer (SM) Unit last week. The Unit is located in Bayport, Texas, USA with a production capacity of 770,000 Tons/Year.

Market Outlook: Stability with Potential Inventory Pressure

The ABS market is expected to remain stable in early February, supported by high upstream raw material costs. However, inventory accumulation may create slight downward pressure. As businesses resume post-holiday, demand is anticipated to recover gradually. Future price movements will depend on supply adjustments, raw material price trends, and the pace of demand revival.