China Styrenics Stabilize While Southeast Asia Remains Under Pressure

China’s polystyrene (PS) and acrylonitrile butadiene styrene (ABS) markets showed signs of stabilization during the week ending July 10, supported by stronger crude oil and styrene prices after months of continuous declines. Domestic prices in China recorded modest gains, while import quotations largely held steady. In contrast, Southeast Asia’s import market remained under pressure, with weak demand and abundant supply continuing to weigh on prices despite a few suppliers attempting to raise offers.

The improvement in China was driven mainly by higher feedstock costs rather than stronger downstream demand. Local GPPS and HIPS prices moved higher, while ABS also registered gains in parts of the domestic market. Producers sought to recover margins after prolonged price weakness, but overall buying activity remained cautious, with most transactions limited in volume.

Across Southeast Asia, the market failed to follow China’s recovery. Import PS prices stayed under pressure, while ABS prices were mostly stable after several weeks of declines. Buyers in the region continued purchasing only essential volumes, citing sufficient inventories and weak end-user demand. Although some suppliers offered firmer prices, most buyers remained on the sidelines, expecting market conditions to remain soft.

Feedstock trends presented a mixed picture. Rising crude oil and styrene prices improved market sentiment and encouraged suppliers to defend prices. However, lower butadiene and acrylonitrile costs continued to ease production expenses for ABS manufacturers, limiting the overall impact of higher styrene values.

Market participants noted that the recent improvement in sentiment has yet to translate into stronger demand. Producers are gradually reducing operating rates to balance supply, while converters remain cautious due to slow downstream consumption. As a result, the near-term outlook continues to depend on whether stronger feedstock costs can generate sustained buying interest.

For now, China’s styrenics market appears to have paused its prolonged decline, whereas Southeast Asia continues to face pressure from weak demand and comfortable supply, keeping the regional market on a cautious footing.

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