Asian ABS Prices Climb on Surging Feedstock Costs Despite Weak Seasonal Demand

Asian ABS markets moved sharply higher this week as renewed strength in crude oil and significant increases in all three key monomers intensified production-cost pressure. Prices increased across China and Southeast Asia, with China's domestic market recording particularly strong gains.

However, the cost-driven rally has received limited support from demand. Buyers continued to purchase mainly for immediate requirements, while the seasonal demand improvement typically seen in September has yet to materialize. Ample supply, weaker downstream margins and competition from cheaper alternatives have also made it difficult for producers to fully pass higher production costs on to ABS buyers.

China Domestic ABS Jumps CNY 800/ton

China's domestic ABS market recorded the strongest increase this week, with injection-grade prices rising by CNY 800/ton ($119/ton) across the board.

Import prices also moved higher, increasing by around $20/ton overall. Northeast Asian cargoes gained $10–20/ton, while ASEAN offers increased by as much as $40/ton.

A trader based in Ningbo attributed the sharp domestic increase to the recovery in crude oil and raw-material costs. Although buyers returned to the market to request quotations, actual purchasing remained largely limited to essential requirements.

Despite the significant weekly increase, domestic ABS continues to be more competitively priced than imported material, allowing local cargoes to remain the preferred option among buyers.

Chinese export offers have also moved higher, with reported levels at $1,420–1,470/ton FOB China.

Styrene, Butadiene and Acrylonitrile Add to Cost Pressure

ABS producers faced simultaneous increases across all three major monomers this week.

CFR China styrene prices rose by $105/ton, reaching their highest level since late April. Butadiene increased by another $80/ton, reaching its strongest level since late May, while acrylonitrile climbed $30/ton to levels not seen since late June.

Crude oil provided additional cost support. Oil prices moved back above $95/bbl in early September as renewed US-Iran military clashes increased concerns over shipping through the Strait of Hormuz.

Brent has averaged around $94/bbl so far this week, approximately $4.6/bbl higher than the previous week's average.

A Hong Kong-based trader said the rise in raw-material costs has significantly strengthened cost support for ABS and expects prices to remain firm while consolidating around current levels in the near term.

September Demand Recovery Remains Elusive

The sharp rise in ABS prices contrasts with continued weakness on the demand side. A source from a Taiwanese producer said September would normally bring stronger orders as manufacturers prepare for China's Double 11 shopping festival and the Christmas season.

This year, however, there has been no clear seasonal improvement in demand across either China or Southeast Asia.

The producer source cited high inflation and weaker consumer purchasing power as key factors limiting end-user consumption. Buyers continue to purchase mainly for essential needs, while overall transaction volumes remain disappointing.

Supply conditions are also offering limited support to sellers. Overall ABS availability remains ample amid persistent oversupply, meaning that higher raw-material costs, rather than tighter supply or stronger demand, are driving the current price increases.

High Costs Encourage Substitution Toward HIPS

Pressure on downstream manufacturers is also becoming visible through increased material substitution.

According to the Taiwanese source, some factories are turning more frequently to recycled materials and lower-cost alternatives to control production expenses. HIPS has reportedly replaced ABS in certain applications, including cutlery and keyboards.

CIF China ABS currently carries an average premium of approximately $100–150/ton over HIPS. While this is not unusually high historically—the premium exceeded $200/ton as recently as June—the reported shift toward HIPS at the current price difference indicates that downstream margins have become sufficiently tight for converters to reconsider their resin choices.

Southeast Asian ABS Prices Rise, but Chinese Competition Limits Upside

ABS prices in Southeast Asia also increased this week, with overall import values rising by $20–40/ton from the previous week.

Northeast Asian offers increased by as much as $40/ton, while ASEAN material gained around $20–30/ton.

Despite the higher monomer costs, producers are finding it difficult to pass the full increase on to customers. A source from a Southeast Asian producer said prevailing monomer prices would theoretically support ABS prices of around $1,700/ton CIF, but weak demand and competition from China make such levels difficult to achieve.

The producer is instead offering around $1,650/ton and remains open to slightly lower bids. Chinese suppliers have also gradually increased their offers, although Chinese ABS remains available at slightly below $1,500/ton CIF Vietnam.

Overall, Asian ABS prices are being driven higher by a sharp feedstock rally rather than a meaningful recovery in demand, while ample supply and lower-priced alternatives continue to limit producers' ability to fully recover rising costs.

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