There is moderate demand for Acrylonitrile Butadiene Styrene (ABS) resin in the Mumbai Market, and the price for the engineering plastic has more or less been stagnant since the beginning of the year. Indianpetrochem spoke to some traders to take stock of the current situation for the polymer in India.
After conversing with a few traders in the market, its understood that the demand for ABS is likely to remain feeble in the coming months due to poor demand from the household appliance industry, which is one of the main end user industry for the polymer. As such, traders anticipate the prices to plummet in the foreseeable future in order to increase the offtake for the polymer in the market.
An ABS end product manufacturer in Mumbai concurred with the market trend when he told the website that, “ There is moderate demand for the engineering plastics at the current prices, we expect the prices to fall so as to increase the demand for ABS for manufacturing purpose".
Presently, natural ABS resin and coloured ABS resin sells at around Rs. 156-160 and Rs. 168-173, respectively, in Mumbai.
There are only two manufacturers for the engineering plastics in India, mainly : Styrolsolution, Bansali Engineering. The website could not get a comment from these companies on this matter.
However, its interesting to take note of the fact that Styrosolution, which is an international conglomerate, has an in-house manufacturing facility for Styrene Monomer (SM) and Polystyrene (which is the feedstock for Acrylonitrile). Also, India is heavily import dependent for SM and Acrylonitrile, as such the current rupee-dollar fluctuations doesn't help domestic manufactures like Bansali Engineering in hedging their position against the inflating raw material cost for manufacturing ABS within the country.
Hence, from a birds eyeview, keeping all these factors in mind, its difficult to predict the price momentum for ABS in the foreseeable future.
By Ntasha Berry
ntasha.berry@indiapetrochem.com
After conversing with a few traders in the market, its understood that the demand for ABS is likely to remain feeble in the coming months due to poor demand from the household appliance industry, which is one of the main end user industry for the polymer. As such, traders anticipate the prices to plummet in the foreseeable future in order to increase the offtake for the polymer in the market.
An ABS end product manufacturer in Mumbai concurred with the market trend when he told the website that, “ There is moderate demand for the engineering plastics at the current prices, we expect the prices to fall so as to increase the demand for ABS for manufacturing purpose".
Presently, natural ABS resin and coloured ABS resin sells at around Rs. 156-160 and Rs. 168-173, respectively, in Mumbai.
There are only two manufacturers for the engineering plastics in India, mainly : Styrolsolution, Bansali Engineering. The website could not get a comment from these companies on this matter.
However, its interesting to take note of the fact that Styrosolution, which is an international conglomerate, has an in-house manufacturing facility for Styrene Monomer (SM) and Polystyrene (which is the feedstock for Acrylonitrile). Also, India is heavily import dependent for SM and Acrylonitrile, as such the current rupee-dollar fluctuations doesn't help domestic manufactures like Bansali Engineering in hedging their position against the inflating raw material cost for manufacturing ABS within the country.
Hence, from a birds eyeview, keeping all these factors in mind, its difficult to predict the price momentum for ABS in the foreseeable future.
By Ntasha Berry
ntasha.berry@indiapetrochem.com
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