Muted Demand and Stable Output Weigh on Imported ABS Market

Key Highlights:

• Natural LOTTE ABS (Hyderabad): ₹1,32,500/MT; Black ABS: ₹1,42,000/MT.
• China spot price down to USD 1445/MT, a 2.59% drop from early July.
• Inventory levels exceed 200,000 tons; producers operating at ~67% rates.
• Weak demand and soft input costs keep market under consolidation

ABS Price Overview – India and China

• In the domestic market, the price of Natural LOTTE ABS (SD-0150) in Hyderabad stands at ₹1,32,500 per metric ton, while the Black LOTTE ABS (SD-0150 K2007) is priced higher at ₹1,42,000 per metric ton in the same region. 
• Meanwhile, in Chennai, the Natural TAITA ABS (5000W) is being offered at ₹1,31,500 per metric ton.
• In China, the average ABS spot price stood at USD1445/ton, registering a -2.59% drop compared to early July. 
• Some product grades showed more significant price declines, reflecting a generally weak and consolidating market sentiment through mid-July.

Demand and Supply: Elevated Inventories and Plant Restarts

• Supply Side: Operating rates of domestic ABS producers edged up from 65% to ~67%, with weekly production staying above 120,000 tons. Inventory levels at polymer plants remain elevated at over 200,000 tons, indicating ample on-site supply. Capacity restarts at Haijiang Chemical, Dalian Hengli, and Liaoning Jinfa have added to the loose supply outlook.
• Demand Side: Downstream demand is sluggish due to the traditional off-season and cautious terminal buying. End-users are mainly engaging in need-based procurement, with overall sentiment dampened by economic uncertainty and geopolitical developments. High domestic inventories and slow turnover are persisting.

Market News: Feedstock Trends and Market Sentiment

• Cost Inputs: Acrylonitrile prices remain weak amid flat production and subdued demand. Supply may increase by late July as Jilin Petrochemical and Liaoning Jinfa ramp up.
• Butadiene has shown moderate strength due to limited port arrivals and low inventory, supporting positive sentiment.
• Styrene continues to weaken, pressured by rising inventories, weak crude fundamentals, and soft downstream demand.
• Geopolitics & Policy: Concerns over Middle East tensions have eased, but uncertainty around U.S. tariff policy lingers, further weighing on demand outlook.

Market Expectation: Weakness to Persist Without Fresh Triggers

• With upstream raw materials broadly under pressure, stable-to-rising ABS plant operations, and subdued seasonal demand, the market remains under consolidation.
• Analysts expect continued weakness in the short term, with no strong upward triggers visible. Unless there’s a significant shift in either demand or cost inputs, ABS prices are likely to stay range-bound.