ABS Prices to Adhere to an Upward Trend Following Rise in Demand for Consumer Durables
- Journalist: Jaideep
Acrylonitrile Butadiene Styrene (ABS) is regarded as a superior replacement of metals owing to its high impact strength and heat resistance. Increasing preference for ABS in electrical and electronic sectors is likely to boost its demand in India in the coming months. Moreover, as India satisfies majority of its consumer durables demand through imports from China, supply chain disruption as an outcome of Coronavirus is anticipated to be a silver lining for the Indian manufacturers of consumer durables who are expecting an increase in their profit margins. Increased production of consumer goods in India will hence fuel the demand for ABS and will have a positive effect on its domestic prices. Prices of ABS have been pushed up in February as production of air conditioners and refrigerators has increased with improvement in seasonal demand. Furthermore, beginning of domestic production of Geysers from March is anticipated to cause a further increase in ABS prices. Owing to the propelling demand, domestic manufacturers such as Bhansali Engineering and Ineos Styrolution introduced a positive revision in ABS prices by around 2 per cent in the month of February.