India’s Acrylonitrile Butadiene Styrene (ABS) Demand to Grow at a CAGR of 6.45% by 2030
by Chem Analyst Chemical Database PriceAccording 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.
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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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Created on May 28th 2020 10:15. Viewed 275 times.