Introduction
The Indian plastics and polymers industry witnessed significant changes during the first quarter of 2026, and one of the most notable developments was the rise in Acrylonitrile Butadiene Styrene prices. ABS is a widely used engineering plastic found in automobile components, consumer electronics, household appliances, toys, luggage, and industrial equipment. Due to its strength, durability, and versatility, it remains an important material for manufacturers across multiple industries.
During Q1 2026, the Indian ABS market experienced a strong upward movement. Prices increased substantially compared to the previous quarter, reflecting a combination of global supply challenges, rising production costs, and healthy demand from downstream industries. Businesses that rely on ABS as a raw material faced higher procurement costs throughout the quarter as market conditions became increasingly tight.
Global Market Conditions Impacting ABS Prices
Globally, ABS prices increased by approximately 8–10% compared to Q4 2025. Although this rise was observed in many regions, the impact was particularly noticeable in India, where market conditions became even more challenging due to domestic supply constraints and rising feedstock costs.
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Rising Feedstock Costs
One of the primary reasons behind the increase in ABS prices was the rise in feedstock costs. ABS production depends on raw materials such as styrene, butadiene, and acrylonitrile. When the prices of these materials increase, manufacturers face higher production expenses, which are ultimately reflected in market prices.
During the first quarter of 2026, feedstock availability was affected by multiple global factors. Geopolitical developments in the Middle East created uncertainty across energy and petrochemical markets, influencing the movement and pricing of raw materials.
Impact of Shipping Disruptions
The situation became more challenging due to disruptions in major global shipping routes. Important trade corridors such as the Strait of Hormuz and the Suez Canal experienced logistical difficulties that affected international trade flows.
These disruptions led to shipment delays, increased freight costs, and reduced supply reliability. For manufacturers dependent on imported feedstocks, these challenges contributed significantly to rising production costs.
Factors Driving ABS Prices in India
India experienced stronger price increases than many other global markets due to a combination of international and domestic challenges.
Delays in Naphtha Shipments
Delays in naphtha shipments from the Middle East reduced the availability of key feedstocks required for petrochemical production. Since naphtha serves as an important raw material for producing ABS feedstock components, supply interruptions had a direct impact on manufacturing economics.
As feedstock shortages continued, producers faced increasing difficulties in maintaining normal operating rates, resulting in tighter supply conditions.
Reduced Production Levels
Many manufacturers were forced to operate at reduced capacities because of limited feedstock availability and rising costs. Lower production levels reduced overall market supply, creating a more competitive environment among buyers.
At the same time, higher energy and operating expenses further increased the cost of producing ABS, contributing to additional price increases across the market.
Government Restrictions on Feedstock Availability
Government restrictions on the use of Liquefied Petroleum Gas (LPG) for petrochemical production added another layer of pressure on domestic manufacturers. Reduced access to certain feedstocks limited production flexibility and contributed to tighter supply conditions within the country.
Demand Remained Healthy Across Key Industries
While supply-side issues were a major factor, demand remained supportive throughout the quarter.
Automotive Sector Demand
The automotive industry continued to be one of the largest consumers of ABS. The material is widely used in dashboards, interior trims, panels, and various molded vehicle components. Stable manufacturing activity helped maintain consistent demand levels.
Consumer Electronics Industry
ABS is extensively used in electronic product housings, computer accessories, televisions, and other consumer devices. Demand from electronics manufacturers remained steady despite rising raw material costs.
Household Appliances Market
Appliance manufacturers also maintained regular procurement activity. Products such as refrigerators, washing machines, air conditioners, and vacuum cleaners commonly use ABS because of its durability and aesthetic properties.
The combination of stable industrial demand and constrained supply created favorable conditions for price growth.
Significant Price Increase in India
During Q1 2026, ABS prices in India increased by approximately 22% compared to the previous quarter. This sharp rise reflected both international supply chain disruptions and domestic market challenges.
Supply availability remained limited while production costs continued to rise. As a result, producers revised their pricing strategies and offered material at higher levels throughout the quarter.
Price increase announcements from major market participants further reinforced the upward direction of the market. These revisions reflected ongoing cost pressures and limited product availability.
March 2026 Witnessed the Sharpest Increase
The final month of the quarter recorded the strongest market movement. ABS prices in India increased by around 38% in March compared to February.
Several factors contributed to this sharp monthly rise:
Continued feedstock cost inflation
Tight domestic supply conditions
Delays in imported raw materials
Higher production expenses
Active purchasing from downstream industries
Many buyers also increased procurement activity to secure inventories amid concerns about future price increases and limited availability.
ABS Price Trend in India
The ABS Price Trend in India during Q1 2026 reflected the combined impact of rising feedstock costs, global shipping disruptions, production constraints, and firm industrial demand.
The market demonstrated how international events can directly influence domestic pricing. Developments in energy-producing regions affected raw material costs, transportation networks, and supply chain efficiency, ultimately impacting Indian manufacturers and buyers.
Throughout the quarter, supply challenges remained the dominant factor supporting higher prices. Even though demand growth was moderate, limited availability and elevated production costs created a strong upward pricing environment.
Market Outlook
Looking ahead, several factors are expected to influence the Indian ABS market.
Feedstock Availability
The availability and pricing of key feedstocks will remain one of the most important drivers of market direction. Any improvement in raw material supply could help stabilize production costs.
Geopolitical Developments
Global geopolitical events will continue to influence energy markets, shipping routes, and petrochemical supply chains. Stability in international trade could reduce some of the pressure currently affecting the market.
Industrial Demand
Demand from automotive, electronics, and appliance sectors is expected to remain important. Consistent consumption from these industries could continue supporting market fundamentals.
Conclusion
The Indian ABS market recorded strong price growth during Q1 2026, supported by rising feedstock costs, shipping disruptions, production constraints, and healthy demand from key manufacturing sectors. Tight supply conditions and increasing production expenses pushed prices significantly higher throughout the quarter.
With domestic prices increasing by approximately 22% compared to the previous quarter and a particularly strong rise observed during March, the market highlighted the ongoing influence of global supply chain challenges on local pricing. As businesses continue to monitor feedstock availability, logistics conditions, and industrial demand, ABS will remain an important material for a wide range of industries across India.
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About Price Watch™ AI
Price-Watch AI is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price-Watch AI specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price-Watch AI platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price-Watch AI transforms market volatility into actionable opportunity.
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