Asian ABS Market Holds Steady Amid Balanced Fundamentals

ABS

24 Feb 20252 Min ReadDaily Market Report

The Asian ABS market remains stable, with steady production rates and sufficient inventories balancing demand. Prices are largely unchanged despite fluctuating upstream costs. While post-holiday demand recovery is slow, major ABS producers maintain consistent operating rates. Short-term price movements are expected to be limited as market conditions gradually stabilize.

Key Highlights:

Price Trends: ABS (5000W) at ₹1,47,000/MT in Ahmedabad, Lotte ABS (SD-0150) at ₹1,51,000/MT in Delhi.
Balanced Market Conditions: Stable ABS production rates and ample inventory keep price fluctuations in check.
Upstream Impact: Acrylonitrile prices remain firm, while styrene faces downward pressure from weak crude oil values.
Post-Holiday Demand: Sluggish demand recovery as buyers refrain from fresh procurement.
Global Production Trends: South Korea, Malaysia, Taiwan, and China maintain stable ABS production rates.

Polymer Price Update: ABS Market Rates Across Key Cities

In Ahmedabad, Natural Taita ABS (5000W) is priced at ₹1,47,000 per metric ton.
Meanwhile, in Delhi, Natural Lotte ABS (SD-0150) is available at ₹1,51,000 per metric ton.
Black Lotte ABS (SD-0150 (K2007)) is being offered at ₹1,61,500 per metric ton in both Kolkata and Delhi.

Supply and Demand: Stability Persists Amid Slow Recovery

In mid-February 2025, the Asian Acrylonitrile Butadiene Styrene (ABS) market remained stable as supply and demand conditions stayed balanced.
Despite earlier fluctuations in upstream costs, ABS prices showed limited movement due to steady production rates, ample inventories, and sluggish post-holiday demand recovery.
The Chinese ABS industry maintained stable plant utilization at 73-74% in early February, ensuring consistent market availability. However, inventory levels at polymerization enterprises slightly increased, reflecting an accumulation of unsold stock.
On the upstream front, the three key ABS feedstocks—acrylonitrile, butadiene, and styrene—exhibited mixed trends. Acrylonitrile prices remained firm due to tight supply and limited inventory, while butadiene continued at elevated levels but faced resistance from buyers.
Styrene prices initially surged but later declined due to increased inventories at ports and weakening crude oil prices, adding downward pressure on ABS production costs.
On the demand side, purchasing activity slowed following the Chinese Spring Festival holiday. Export-driven demand for household appliances had been largely fulfilled in January, and downstream manufacturers resumed operations at a gradual pace.
Some buyers had stocked up on ABS in previous months, leading to reduced fresh procurement, further limiting market momentum.

Market News: Shipping Delays and Inventory Buildup Affect Pricing

Shipping delays following the Chinese New Year have disrupted market movements, causing producers to relinquish early-month gains. While pre-holiday sales were strong, logistical constraints have slowed product movement, leading to rising inventories at production facilities.
Despite a tight supply situation before the holiday, butadiene prices have remained firm. However, market participants anticipate a supply increase, which could ease current resistance from buyers. Meanwhile, styrene’s pre-holiday price gains have been eroded by weaker crude oil values and accumulated port inventories, exerting downward pressure on production costs.
Korea Kumho Petrochemical Corp is operating its ABS unit in Ulsan, South Korea, at 60-70% of its actual capacity, with a production capacity of 250,000 tons per year.
Meanwhile, LG Chem has maintained an 80% operating rate for its ABS unit in Yeosu, South Korea, since mid-February 2025, with a capacity of 900,000 tons per year.
In Malaysia, Toray Plastics is running its ABS plant in Penang at 75% capacity, with an annual production capacity of 425,000 tons. Similarly, Taiwan's Taita Chemical is operating its ABS unit in Kaohsiung at 70-80% of its actual capacity, producing 100,000 tons per year.
In contrast, LG Yongxing Chemical continues to run its ABS plant in Ningbo, Zhejiang, China, at full capacity, with a production capacity of 850,000 tons per year.

Expert Outlook: Limited Price Fluctuations Expected in the Near Term

The ABS market is expected to remain stable in the near term as supply-side pressure increases with higher inventories. Upstream costs are likely to stay mixed, while demand recovery remains slow.
A gradual improvement in buying activity will be necessary before the market regains strength. Short-term price fluctuations are expected to be limited.