NATURAL LOTTE ABS (SD-0150) in Chennai

Polymer prices in India are rising due to speculative inventory hoarding ahead of a potential duty hike targeting non-BIS-compliant materials. Market trends suggest further price increases through February, with close attention to fiscal policy announcements.

As of January 8th, ABS prices in India remain stable at ₹139,000/MT across major cities. While supply has increased, reaching 74% capacity utilization, downstream demand softened amid cautious purchasing. Upstream cost fluctuations and pre-holiday buying offered limited support. Analysts expect weak consolidation, with potential post-holiday recovery driven by policy incentives.

Polymer markets show price variability across grades and locations, with ABS and HDPE prices reflecting current trends. Demand for engineering-grade polymers like ABS and nylon remains weak, with no recovery signs. Meanwhile, stable feedstock prices and shifts in market dynamics indicate a buyer-dominated environment.

In the domestic market, Taita ABS natural in Ahmedabad is priced at ₹1,38,000/MT, while Lotte ABS black in Kolkata ₹1,55,000/MT. - The ABS market in Asia is expected to remain weak, with the supply-demand imbalance likely to persist. Upstream cost factors show no significant signs of a rebound, and supply is expected to remain abundant.

PVC prices range between ₹74-77.75/kg, with a notable oversupply in the Asian market due to increased production and declining real estate demand. Despite a 2.5% rise in production to 20.5 million tons in 2024, apparent consumption fell, exacerbating inventory build-ups and pressuring prices downward in a sluggish economic environment.

Polymer prices reflect continued market weakness as both supply and demand face challenges. Increased production and imports are pressuring supply, while limited demand follow-up and inventory replenishment dominate downstream activities. Maintenance shutdowns by major producers like Reliance aim to stabilize operations.

PET prices remain stable, with Reliance at Rs. 93,000/MT and Wankai 801 at Rs. 86,500/MT. Malaysia has imposed provisional anti-dumping duties (ADDs) on PET imports from China and Indonesia, ranging from 6.33% to 37.44%, to protect its domestic PET industry. This could stabilize local PET supply while causing minor cost increases for downstream sectors.

Polypropylene (PP) prices remain steady in domestic and global markets as supply outpaces demand. Domestic output has increased slightly, with abundant inventories and moderate seasonal demand in sectors like packaging. Global supply chains are supported by imports, while maintenance shutdowns in China and Saudi Arabia contribute minimally to price movements.

PET prices have increased due to rising production costs, fuelled by surging crude oil prices and higher polyester raw material rates. While new production facilities may ease supply constraints, short-term growth remains limited as downstream buyers adopt a cautious approach. The approaching Spring Festival is expected to bolster domestic demand for PET, supporting market stability amidst rising supply levels.