BLACK LOTTE ABS (SD-0150 (K2007)) in Kolkata

Styrene Monomer prices showed minimal fluctuations due to weak buying trends. Rising benzene costs have increased production expenses, squeezing profit margins. Demand remains sluggish, particularly in EPS and 3S sectors. Meanwhile, supply remains stable despite maintenance activities. Market expectations indicate continued price consolidation, influenced by crude oil trends and benzene movements.

The ABS polymer market remained stable in January, with slight price increases in some grades. Production fluctuated, impacting inventory levels, while raw material prices remained firm. Demand spiked pre-holiday but slowed during the Spring Festival. The market is expected to stabilize in February, with prices influenced by supply adjustments and raw material costs.

Indian polymer prices fluctuate amidst steady PP and PE demand. International suppliers raise prices, while Middle Eastern supply is restricted. Chinese suppliers offer competitive rates. LDPE faces tight supply, whereas HDPE demand weakens.

The styrene market shows mixed trends, balancing adequate supply and moderate demand. Prices rose marginally in China to 8,550 Yuan/MT. Imported styrene at Kandla is priced at ₹95.5/kg. Despite seasonal stocking, increasing inventories weigh on market momentum. Near-term fluctuations are expected, influenced by supply pressures and cautious demand recovery.

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.

PP prices surged in February 2025 due to supply shortages from Middle Eastern and Asian producers, logistical disruptions, and rising feedstock costs. While the packaging sector remains stable, demand in automotive and construction is weak. Market experts anticipate further price increases amid supply constraints, particularly before Ramadan.