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

ABS prices remain stable across various locations, with LOTTE's SD-0150 (Black) priced at ₹158,000/MT. Domestic ABS demand in China is rising ahead of the Spring Festival despite a slight decrease in production rates. ABS market stability is expected, with ongoing interest from household appliance sectors.

The domestic ABS market remains under pressure due to weak demand and rising inventory levels. While production stabilized at 72% operating rates, oversupply and sluggish downstream demand continue to weigh on prices. With key raw materials showing weak trends, market sentiment remains cautious, and price corrections may persist in the near term.

Ethylene market dynamics remain uncertain as inflation pressures impact supply expansion plans. Westlake’s potential cracker expansion in Louisiana could increase capacity by 40%, but cost concerns delay decisions. Meanwhile, polymer prices remain volatile, with PVC, HDPE, LDPE, and ABS seeing mixed trends across major Indian hubs. Short-term market stability is expected.

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.

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.