Asian PS and ABS markets decline from April highs as feedstock prices weaken

Asian PS and ABS markets have continued moving lower after reaching multi-year highs in early April during the peak of the US-Iran conflict-driven rally. Since mid-April, prices across China and Southeast Asia have steadily corrected as feedstock costs weakened sharply and downstream demand remained sluggish.

The recent downturn has mainly been driven by falling styrene and butadiene prices, along with weak buying activity from key sectors such as home appliances, electronics, and consumer goods.
ABS faces stronger pressure than PS.

In China, import PS prices have extended losses for the fourth consecutive week, moving notably lower from the elevated levels seen earlier in April. ABS import prices have also softened after touching their highest levels in several years.

Domestic markets in China witnessed even sharper corrections. While PS prices recorded moderate declines over the past month, ABS injection grades experienced much steeper drops as rapidly falling feedstock costs reduced production expenses and pressured sellers to lower offers.

Southeast Asian markets followed a similar trend. Import PS prices in the region continued weakening from April highs, while ABS prices also moved lower after failing to sustain earlier gains.
Falling styrene and butadiene costs pressure markets

One of the main reasons behind the bearish market direction has been the sharp correction in upstream energy and feedstock markets.

Crude oil prices had previously weakened amid hopes of easing geopolitical tensions in the Middle East and broader concerns surrounding the global economy. Softer energy values quickly translated into lower feedstock prices, removing the strong cost support that had fueled the earlier rally in PS and ABS markets.

Styrene monomer prices continued declining amid weaker demand and softer crude oil trends, directly pressuring PS prices across Asia. Suppliers across China and Southeast Asia reduced offers to remain competitive as the market weakened further.

At the same time, ABS markets faced even heavier pressure due to the steep fall in butadiene prices. After surging to extremely high levels in late March, butadiene values corrected sharply in recent weeks, significantly lowering production costs for ABS manufacturers.

Weak downstream demand limits buying activity

Demand conditions across Asia remained weak, preventing the market from stabilizing despite recent price cuts.

Market participants continued reporting poor order intake from downstream industries, especially from appliance manufacturers, electronics producers, and consumer goods sectors. Slower manufacturing activity and cautious consumer spending continued weighing heavily on market sentiment.

Most buyers preferred purchasing only small volumes to meet immediate production requirements, expecting prices to decline further in the coming weeks. Even aggressive discounts failed to revive trading activity meaningfully, highlighting the extent of current demand weakness.

In Southeast Asia, the approaching monsoon season added additional pressure, as market players expect manufacturing activity in several consumer-related industries to slow further. Trading activity across the region therefore remained limited, while overall sentiment continued leaning bearish.

Chinese cargoes intensify competition in Southeast Asia

Competitive Chinese cargoes remained one of the biggest pressure points for Southeast Asian import markets.

Buyers increasingly favored lower-priced Chinese material over offers from traditional suppliers such as Taiwan and ASEAN producers. In countries like Vietnam, deeply discounted Chinese cargoes heavily pressured the lower end of the market, forcing other suppliers to reduce prices to remain competitive.

Market participants noted that China’s growing influence in the styrenics market has intensified regional competition significantly. Several traders reported that some Chinese GPPS deals were concluded at extremely aggressive levels, making Chinese material the preferred option for many converters struggling with weak downstream demand and tight margins.

The rising pressure from Chinese suppliers forced regional producers to make further downward adjustments, especially for GPPS injection grades, as sellers attempted to defend market share in an increasingly competitive environment.

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