ABS Market Stable Amid Mixed Upstream Trends and Demand Rebound

Key Highlights

• Stable Prices Across Grades: Indian ABS prices showed no day-on-day changes, with notable rates such as LOTTE Black ABS at ₹1,55,000/MT in Kolkata and TAITA Natural ABS at ₹1,38,000/MT in Ahmedabad.
• Demand Revival: Slight demand improvements stemmed from seasonal factors like the "Double Eleven" festival and government subsidies, driving higher stocking by end-users, particularly in home appliances.
• Feedstock Dynamics: While Acrylonitrile prices remain elevated due to supply constraints, Styrene saw bullish trends due to tight supply and higher upstream costs, offering consistent cost support for ABS.
• Production Trends: Asia's ABS operational rates dipped slightly to 71% due to maintenance activities, but inventories declined by over 10,000 tons, creating modest support for spot prices.

Polymer Prices: Indian ABS Market Holds Steady

• ABS prices in India remained stable with no day-on-day changes recorded across key markets.
• For Black ABS, LOTTE’s offering in Kolkata stood at ₹1,55,000/MT.
• For Natural ABS, prices varied by brand and location: STYRENIX in Chennai was at ₹1,45,000/MT, BHANSALI in Delhi at ₹1,44,000/MT, LOTTE in Delhi at ₹1,48,000/MT, and TAITA in Ahmedabad at ₹1,38,000/MT.
• Overall, the ABS market demonstrated stability, with no fluctuations across all grades and regions.
• The average price of ABS in the China market last week was $1580/mt, maintaining a stable position compared to the beginning of the month.

Demand Surge Expected from Pharma and Coatings

• The operational rate of ABS production in the Asian region slightly declined to 71%, following maintenance activities at Jilin Petrochemical and Zhejiang Petrochemical.
• Despite this, the weekly production remains above 120,000 tons, indicating abundant supply.
• Inventories saw a reduction, with levels dropping by over 10,000 tons to 178,000 tons, providing modest support to spot prices.
• Terminal demand experienced a slight boost, spurred by events like the "Double Eleven" shopping festival and government subsidy policies.
• Increased stocking activities by end-users, especially in the home appliances sector, contributed to a rebound in factory loads.
• Exporters have also advanced some procurement due to global market concerns, further driving demand.

Global Feedstock Trends Shape Price Spreads

• Acrylonitrile: Prices remain elevated due to supply constraints from plant shutdowns, including Anqing Petrochemical and Shanghai SECCO. However, the limited ability to pass on higher costs has capped significant upward potential.
• Butadiene: The market remains weak but has shown signs of stabilization as declining prices stimulate some purchasing interest.
• Styrene: A bullish trend dominates due to tight supply, stronger upstream costs, and reduced imports. This segment has provided the most consistent cost support for ABS.
• Aekyung Chemical is operating its No.3 and No.4 Phthalic Anhydride (PA) Plants at reduced rates. The Plants are located in Ulsan, South Korea with a total production capacity of 135,000 Tons/Year.
• Plastics News: Sinochem Quanzhou has restarted its Polypropylene (PP) Unit following short maintenance work. The Unit is located in Fujian, China with a production capacity of 350,000 Tons/Year.

Expert Opinion: Supply Adjustments from Key Producers

The ABS market is expected to remain stable with limited price fluctuations in the short term. While demand-side improvements and inventory reductions lend strength to the market, the supply contraction is not substantial enough to drive significant price changes. The market will likely continue consolidating as it seeks equilibrium between supply and demand.