Global ABS Market Under Strain as Oversupply Meets Weak Demand in March 2025

Key Highlights

• LOTTE ABS (SD-0150) natural priced at ₹145,750–₹147,250/MT; black variant commands up to ₹157,500/MT.
• TAITA ABS (5000W) natural remains more affordable at ₹138,750–₹140,500/MT.
• Global oversupply persists amid muted demand from core sectors like automotive and appliances.
• European capacity cuts and plant closures reflect continued pressure on margins.

ABS Price Overview Across Indian Cities

• LOTTE ABS (SD-0150) in natural color is priced between Rs. 145,750/MT and Rs. 147,250/MT across major cities like Ahmedabad, Delhi, Kolkata, Mumbai, Chennai, Hyderabad, and Ghaziabad. 
• Meanwhile, LOTTE ABS (SD-0150 K2007) in black color is priced higher, ranging from Rs. 154,750/MT to Rs. 157,500/MT, with the highest rate observed in Hyderabad. 
• TAITA ABS (5000W) in natural color is relatively more economical, with prices varying from Rs. 138,750/MT to Rs. 140,500/MT across Ahmedabad, Mumbai, Chennai, Kolkata, Hyderabad, Ghaziabad, and Delhi. 

Global Supply-Demand Imbalance and Regional Trends

• The global Acrylonitrile Butadiene Styrene (ABS) market witnessed a notable downturn in March 2025, primarily driven by weak downstream demand and a persistent oversupply situation across key regions like Asia and Europe.
• In Asia, producers faced headwinds from elevated inventory levels amid stagnating demand from core industries such as automotive and appliances. End-users were reluctant to place fresh orders, citing uncertain market outlook and high material costs, which dampened procurement interest. 
• The market remained oversupplied, and despite firm prices for Butadiene—a crucial raw material for ABS—buyer activity was muted, leading to pricing corrections.
• In Europe, the oversupply issue was compounded by increased imports from Asia, resulting in aggressive market offers and heightened competition. Local production remained high even as demand fundamentals lagged. 
• The appliance and automotive sectors, traditionally large consumers of ABS, showed limited revival, with the UK’s industrial production further declining and Purchasing Managers' Index (PMI) data reflecting only marginal improvement. 
• Despite production cutbacks by some players, including the shutdown of facilities, the supply continued to outpace the demand, squeezing margins and profitability.

Feedstock Price Movements and Production Dynamics

• Butadiene prices remained relatively firm, especially after a weak start to the month.. Styrene, another key ABS feedstock, saw price declines amid oversupply and reduced downstream consumption. Benzene imports rose in Asia, especially in Shandong, pressuring domestic prices further.
• In Europe, LyondellBasell (LYB) and Covestro announced the permanent closure of their Propylene Oxide/Styrene Monomer (POSM) unit at the Maasvlakte plant in the Netherlands. The closure was attributed to chronic overcapacity, surging imports, and uncompetitive economics in the region.
• High energy costs in Europe, combined with structural inefficiencies, further challenged the production environment.
• Demand from Europe’s automotive and appliance sectors failed to show meaningful recovery despite initial optimism around a slight uptick in manufacturing indices.

Market Expectation: Industry Outlook Amid Weak Demand Signals

The global ABS market is expected to remain under pressure in the near term. Supply continues to outpace demand, and with structural issues in Europe and sluggish demand in Asia, any significant price recovery seems unlikely. Producers may pursue further production cuts or operational adjustments, but unless downstream demand revives, ABS prices are likely to consolidate at lower levels.