ABS Prices Under Pressure Amid Oversupply and Weak Demand Across Asia

Key Highlights

• ABS prices in China have plunged 12% over three months to $1,465/MT; Indian prices remain higher due to limited supply. 
• Production stays elevated with over 200,000 tons of stockpiles; Tianjin Dagu and Yulong restart adds to the surplus. 
• Feedstock acrylonitrile, butadiene, and styrene show mixed trends, offering no support for ABS recovery. 
• ABS prices expected to hover near or below cost levels amid market pessimism and sluggish demand.

Polymer Price: ABS Prices Slide Further in Asia

• ABS (Acrylonitrile Butadiene Styrene) prices continued to weaken across Asian markets during the last week of April 2025. The bearish sentiment was driven by oversupply, falling feedstock prices, and weak downstream demand.
• ABS prices in China dropped from $1667/MT to $1465/MT over the past three months, reflecting a 12% decline in the domestic market. India's ABS market also felt the impact of this downturn. However, limited availability allowed sellers to maintain competitive pricing. India, a major importer of ABS, primarily sources the material from South Korea, China, and Malaysia.
• ABS TAITA, grade 5000W and natural in color, is currently priced differently across major Indian cities. In Ahmedabad and Delhi, the price stands at ₹132,000 per metric ton. 
• Mumbai and Ghaziabad report a slightly higher price of ₹133,000/MT, while Hyderabad sees a marginal increase to ₹133,250/MT. Kolkata has a price of ₹133,500/MT, and Chennai records the highest at ₹135,000/MT. 

Persistent Oversupply Worsened by Restarted Capacities

• Production remained high with weekly output averaging 120,000 tons, resulting in a heavy inventory buildup exceeding 200,000 tons. Major players like Tianjin Dagu and Yulong resumed additional capacities, adding further to the glut.
• Acrylonitrile prices weakened as Shandong and East China plants returned from maintenance and demand slowed
• Butadiene prices declined sharply, driven by falling crude oil and synthetic rubber futures, as well as adequate port arrivals
• Styrene saw slight firmness due to centralized inspections and stronger benzene fundamentals, though this was not enough to lift ABS values meaningfully.
• Weak downstream activity continued, with converters running at low rates and only placing minimal orders to meet immediate needs.
• Market participants displayed low confidence, delaying purchases and leading to sluggish transactions.

Polymer News: Taita, Kumho Run at Reduced Rates

• Taita Chemical is operating its Acrylonitrile Butadiene Styrene (ABS) plant at 70% capacity for May 2025. The facility, located in Kaohsiung, Taiwan, has an annual production capacity of 100,000 tons.
• Kumho Petrochemical is running its ABS unit at 65% of total capacity in May 2025. The plant, based in Ulsan, South Korea, has a production capacity of 250,000 tons per year.
• Elix Polymers is scheduled to shut down its ABS plant in Tarragona, Spain for planned maintenance in May 2025. The facility has an annual production capacity of 180,000 tons
• Additional production returns from Tianjin Dagu and Yulong added pressure to an already oversupplied market.
• Acrylonitrile and butadiene prices weakened due to lower demand and rising feedstock availability.Styrene gained marginal support from tight availability, but downward pressure remains.

Market Expectation: Bearish Sentiment Likely to Extend Price Weakness in Short Term

ABS prices in Asia are expected to remain under pressure, likely hovering at or below cost levels. Persistent oversupply, subdued demand, and weak market sentiment indicate the potential for further price declines in the short term.