Asian ABS Market Faces Persistent Downward Pressure Amid Supply-Demand Imbalance and Weak Cost Support

Key Takeaways

• In Ahmedabad, the price of NATURAL TAITA ABS is currently at ₹1,38,000 per metric ton. Meanwhile, in Kolkata, BLACK LOTTE ABS is priced at ₹1,55,000 per metric ton.
• High ABS inventories in Asia persist despite low demand and limited cost support, slowing market recovery.
• Production shutdowns are planned across facilities in China, UAE, and Saudi Arabia, potentially impacting regional supply balances.

Polymer Price Overview

• In Ahmedabad, the price of NATURAL TAITA ABS is currently at ₹1,38,000 per metric ton. Meanwhile, in Kolkata, BLACK LOTTE ABS is priced at ₹1,55,000 per metric ton.
• Polymer prices remain largely steady, with Ex-Godown rates for PP Raffia, PP Film, and PPCP between ₹91-101/kg.

Polymer Market Supply and Demand Trends

• The Asian ABS market continues to face a supply-demand imbalance, with high inventory levels remaining largely unchanged despite early-month maintenance activities.
• The supply side remains stable, with production and inventory levels showing little reduction, even as weak cost support and subdued demand from downstream companies persist.
• Demand across the ABS sector remains soft, with primary terminal demand not reaching expected peak seasonal levels.
• Downstream production recovery is slow, and stocking activity is minimal, further limiting demand growth.

Polymer News: Shutdowns and Supply Chain Updates

• Tongliao GEM Chemical has shut its MEG Unit. The Unit is located in Tongliao, Inner Mongolia, China.
• Sinopec Shanghai Petrochemical is planning to restart its Polypropylene (PP) Line in mid-November, 2024 following fire. The Line is located in Shanghai, China.
• It's heard that Borouge intends to shut its Polyethylene (PE) Plant in mid-November until end-December, 2024. The Plant is located in Ruwais, UAE with LDPE production capacity of 350,000 MT/Year, LLDPE capacity of 540,000 Tons/Year and HDPE/LLDPE Swing Unit capacity of 540,000 MT/Year.
• Ibn Zahr (SABIC) is planning to shut its No.1 Polypropylene (PP) Plant in early-November, 2024 for maintenance work of around three weeks. The Plant is located in Al Jubail, Saudi Arabia.

Expert Opinion: Future Polymer Price Projections

• The ABS market is expected to continue experiencing downward price pressure in the near term, driven by structural supply-demand imbalances and limited demand recovery.
• Weak upstream cost support and the sustained wait-and-see sentiment among buyers are likely to keep prices low.
• Traders’ lack of confidence in future demand growth is expected to result in reduced warehousing activity, slower inventory movement, and limited market offers.