According to ChemAnalyst report, “India Acrylonitrile Butadiene Styrene (ABS) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. The demand for ABS is expected to achieve a healthy CAGR of 6.45% in the forecast period influenced by the enhanced demand for medical equipment and medical inhalers in the healthcare industry on increasing requirements for medical facilities after the Coronavirus outbreak. Acrylonitrile Butadiene Styrene (ABS) is a thermoplastic copolymer utilizing Acrylonitrile, Butadiene and Styrene as feedstocks. High thermal and electrical insulation properties observed in ABS makes it a profound choice for production of plastic used in the electrical and electronic industry. Consequently, increasing utilization of ABS in the manufacturing of various appliances in the rapidly expanding Asian electronic sector is also perceived to provide a significant hike in demand for ABS in the coming years.
Browse the Complete Report : India Acrylonitrile Butadiene Styrene (ABS) Price
The implementation of the new vehicle safety legislation Act in April 2019 considerably pushed the demand for ABS in the automotive industry being utilized in the manufacturing of plastic required for braking system and various other parts. Moreover, Bharat Stage VI emission norms demanding producing of BS VI fuel compatible vehicles also contributed well towards the growth of ABS in the automotive industry.
Outbreak of Coronavirus in the final quarter of FY 20 has led to an astonishing downtrend in the demand for ABS as major end-user industries of the product were compelled to halt the production in compliance to the measures put up by the government to contain the virus. Even after the ease in restrictions several automotive companies did not resume the production while the others operated their plants at severely low rates to reduce inventory build-up and refrain revenues in times of reduced demand. However, the hard-hit demand for ABS from the automotive sector was brought back to stable grounds by the rise in demand for medical inhalers and medical equipment requiring ABS due to its superior strength and insulation properties. The demand for ABS from the healthcare sector is anticipated to prosper at an appreciable rate on increasing requirement for advanced healthcare facilities till a proper vaccine is attained for the complete abatement of the virus. Moreover, persistent demand for ABS from electrical and electronic sector in manufacturing of various appliances like air conditioners, refrigerators and geysers is likely to uphold the demand for ABS in tough times of Global Pandemic. The supply chain disruption incurred during the outbreak initially pushed up the demand for the product in the first half of Q4 as reduced supply of electronic component from China proved to be a silver lining for the Indian electronic manufacturers eyeing to widen their profit margins by enhancing their production of electronic goods and thereby, leading to a surge in demand for its highly demanded polymer, ABS. As India is primarily inclined towards imports for the availability of ABS feedstocks comprising Styrene and Acrylonitrile, the production eventually became stagnant in the later half of the final quarter. The lingered demand for ABS in anticipated to recover at a prominent rate by the end of FY 21 as the country is keener to rely on the domestic manufacturing of various chemical feedstocks and products in response to the government initiative of self-reliant India. This initiative will enhance the domestic consumption of ABS and bolster the growth of Indian ABS market as manufacturers will not be forced to set the domestic prices in line with the prices of the ABS imported from other countries.
According to ChemAnalyst report,” “India Acrylonitrile Butadiene Styrene (ABS) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”. Major players operating in the India ABS Market include Bhansali Engineering Polymers, INEOS Styrolution, LG Chemical, Saudi Basic Industries Corporation (SABIC) , Lotte Chemical Corporation, Toray Industries Incorporation, Chi Mei Corporation, Samsung SDI Chemical, Formosa Plastic Group, China National Petroleum Corporation, The Dow Chemical Company, JSR Corporation etc. The renowned Indian manufacturers, Bhansali Engineering Polymers and INEOS Styrolution satisfy more than 75% of the domestic demand. Whereas the remaining demand for ABS is catered through cheap imports from China and South Korea. Thus, the idea of self-reliant India prompts huge potential for the two domestic manufacturers to expand their revenue share. Owing to the abundant installed capacity of 360KTA of ABS, India is largely involved in the exportation of ABS to West, especially Europe. The India ABS market beingly highly inclined over electrical and electronic sectors is expected to witness an incredible surge on enhanced stress over the domestic production of electronic components and appliances.
“ As ABS in one of the highly desired polymers in industries requiring material of prominent strength, durability and insulation, the demand for ABS is likely to spur in the coming years on elevated stress over expanding the domestic manufacturing facilities in various industries in compliance to the government initiative of self-reliant India. However, till the country establishes ground-breaking facilities for manufacturing of largely imported chemicals, the ABS Market may face indefinite challenges as it is highly reliant on imports of its raw materials. Emphasizing the continuous growth and advances being made in the Indian chemical industry, struggle for availability of raw material for manufacturing of end-products is likely to be exempted by the end of FY 21. The outbreak of global Pandemic in the final quarter of FY 20 has caused a sudden downturn in the global demand for ABS. The downturn is an effect of the significant fall in automotive sector due to lockdown imposed by various countries in wake of the Coronavirus spread. The lockdown has led to a record fall in economies followed by devastating industrial fallout. However, several industries like pharmaceuticals, healthcare, specialty chemicals and polymers have flourished and consolidated high revenues. Consequently, ABS demand from healthcare industry observed a significant increment as it is widely utilized in the manufacturing of medical inhalers and equipment. Although the demand for ABS from electronic and electronic sector did not witness high records in Q4 of 2020 , it is likely to remain the major consuming segment for ABS in the forecast period owing to the levied stress on domestic manufacturing by the Indian government.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.
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