MarketsMonday, 29 June 2026·India
Asian PS, ABS Markets Eye Further Declines in July as Bearish Forces Gather
Asian PS and ABS markets continued to weaken through late June, with prices across China and Southeast Asia extending their downtrend that began in mid-April. The latest round of reductions came amid sluggish downstream demand, ample material availability, and sharply lower feedstock costs, strengthening expectations of further price erosion in July.
Market sentiment deteriorated further after crude oil and key raw material prices fell sharply following the easing of geopolitical tensions in the Middle East. Styrene prices have now returned to levels seen before the conflict-related rally, while butadiene values have slipped below pre-conflict benchmarks. Despite repeated price reductions, buyers remained cautious and largely restricted purchases to immediate requirements, anticipating additional declines ahead.
Although prices have fallen significantly over the past two months, imported PS and ABS grades in both China and Southeast Asia continue to trade above pre-conflict levels. ABS has retained the largest premium, with import prices remaining notably higher than levels seen before the Middle East crisis. HIPS and GPPS grades also continue to hold part of their earlier gains, indicating that the market correction may not yet be complete.
A key exception has emerged in China’s domestic ABS market. Local ABS prices have dropped below pre-conflict levels due to intense competition among producers, abundant supply, and weak demand from the home appliance and electronics sectors. The decline has created a wide gap between domestic and imported material, making local products significantly more competitive.
Domestic PS prices in China, however, remain above pre-conflict levels despite recent corrections. Market participants believe this leaves room for further adjustments if feedstock weakness and poor demand persist.
Looking ahead, several factors are expected to keep pressure on PS and ABS markets. Feedstock costs have continued to normalize following the decline in crude oil prices, removing a major source of support for styrenics. Styrene prices in Asia have already slipped slightly below pre-war levels, while butadiene has also moved lower. Acrylonitrile remains elevated compared with earlier levels but has also started to weaken.
Demand conditions remain challenging across the region. Consumption from key sectors such as electronics, household appliances, and consumer goods has been subdued, while buyers continue to adopt a wait-and-see approach in anticipation of lower prices. As a result, trading activity has remained slow despite ongoing seller discounts.
Supply conditions also remain comfortable. China continues to face abundant availability due to capacity expansions and relatively high operating rates, while competitive Chinese material is adding pressure across neighboring Southeast Asian markets. Regional sellers are therefore finding it increasingly difficult to maintain pricing levels.
With feedstock support fading, demand remaining weak, and supply ample, most market participants expect PS and ABS prices to remain under pressure through July, with further declines likely across both China and Southeast Asia.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Market sentiment deteriorated further after crude oil and key raw material prices fell sharply following the easing of geopolitical tensions in the Middle East. Styrene prices have now returned to levels seen before the conflict-related rally, while butadiene values have slipped below pre-conflict benchmarks. Despite repeated price reductions, buyers remained cautious and largely restricted purchases to immediate requirements, anticipating additional declines ahead.
Although prices have fallen significantly over the past two months, imported PS and ABS grades in both China and Southeast Asia continue to trade above pre-conflict levels. ABS has retained the largest premium, with import prices remaining notably higher than levels seen before the Middle East crisis. HIPS and GPPS grades also continue to hold part of their earlier gains, indicating that the market correction may not yet be complete.
A key exception has emerged in China’s domestic ABS market. Local ABS prices have dropped below pre-conflict levels due to intense competition among producers, abundant supply, and weak demand from the home appliance and electronics sectors. The decline has created a wide gap between domestic and imported material, making local products significantly more competitive.
Domestic PS prices in China, however, remain above pre-conflict levels despite recent corrections. Market participants believe this leaves room for further adjustments if feedstock weakness and poor demand persist.
Looking ahead, several factors are expected to keep pressure on PS and ABS markets. Feedstock costs have continued to normalize following the decline in crude oil prices, removing a major source of support for styrenics. Styrene prices in Asia have already slipped slightly below pre-war levels, while butadiene has also moved lower. Acrylonitrile remains elevated compared with earlier levels but has also started to weaken.
Demand conditions remain challenging across the region. Consumption from key sectors such as electronics, household appliances, and consumer goods has been subdued, while buyers continue to adopt a wait-and-see approach in anticipation of lower prices. As a result, trading activity has remained slow despite ongoing seller discounts.
Supply conditions also remain comfortable. China continues to face abundant availability due to capacity expansions and relatively high operating rates, while competitive Chinese material is adding pressure across neighboring Southeast Asian markets. Regional sellers are therefore finding it increasingly difficult to maintain pricing levels.
With feedstock support fading, demand remaining weak, and supply ample, most market participants expect PS and ABS prices to remain under pressure through July, with further declines likely across both China and Southeast Asia.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
