ABS price is not likely to go up in India upto February 2014 end. The strong likelihood is indicated by a slew of factors, which could be considered as potential drivers of the price. Market research conducted by Indianpetrochem has revealed that demand for the engineering polymer from the appliance, automotive and air-conditioner segments were waning, resulting in traders in the major markets in the country experience inactive ABS sales.
Understandably, with the ongoing winter season, there is almost no demand for ABS from the air-conditioner manufacturers in the country. Appliance manufacturers said that they experienced dull demand for their end-products, while, slow-down in the automotive segment compounded to the declining demand for the engineering polymer in the Indian subcontinent.
In addition, other factors were also found that weakened buying tendency among most ABS item manufacturers in India. Many buyers also waited to see any change in government policy in the upcoming union budget, subsequent to which, they preferred to formulate their manufacturing plans. Besides, many ABS buyers also restricted their raw material purchases due to accounting issues arising from the ending fiscal.
Feedstock price movements are not likely to impact ABS price in India in the near term as Styrene price is not likely to gain in the Asian continent upto the end of February 2014.
In India, Styrolution has currently quoted its ex-work ABS price at Rs 145 per kg.
By Indu Bhusan Nath,
ibnath@indianpetrochem.com
Understandably, with the ongoing winter season, there is almost no demand for ABS from the air-conditioner manufacturers in the country. Appliance manufacturers said that they experienced dull demand for their end-products, while, slow-down in the automotive segment compounded to the declining demand for the engineering polymer in the Indian subcontinent.
In addition, other factors were also found that weakened buying tendency among most ABS item manufacturers in India. Many buyers also waited to see any change in government policy in the upcoming union budget, subsequent to which, they preferred to formulate their manufacturing plans. Besides, many ABS buyers also restricted their raw material purchases due to accounting issues arising from the ending fiscal.
Feedstock price movements are not likely to impact ABS price in India in the near term as Styrene price is not likely to gain in the Asian continent upto the end of February 2014.
In India, Styrolution has currently quoted its ex-work ABS price at Rs 145 per kg.
By Indu Bhusan Nath,
ibnath@indianpetrochem.com
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