Asian ABS markets face renewed drops as weak demand persists into Jan

After hitting seven-month lows in the second half of November 2024, import ABS prices in Asia largely remained stable, except for a slight increase in China two weeks later. However, the import market resumed downward trend during the week ending on January 10, while local prices inside China continued a two-week decline amid a double whammy of poor demand and weak costs.

Downward adjustments dominate markets

As the Lunar New Year approached, market activity quieted, prompting most ABS sellers to lower their prices. The ongoing supply-demand imbalance in China led local suppliers to redirect shipments to Southeast Asia at competitive prices, exerting downward pressure on the region’s lower-end prices. “Offers for Chinese-origin cargoes remain soft, further dragging down import prices,” said a Vietnamese trader.

Compared to the previous week, import prices in China fell by $10-50/ton, while Southeast Asia saw declines of $30-40/ton. According to ChemOrbis Price Index data, China’s import prices hit a nine-month low, while Southeast Asia’s average dropped to its lowest level since early March 2024. Southeast Asia continued to trade $20/ton lower than China for the third consecutive month.



The domestic market in China mirrored these trends, with ABS injection prices falling by CNY150-200/ton ($20-27/ton) from their highest point since mid-May 2024, recorded two weeks ago, according to the ChemOrbis Price Index.

Chronic demand weakness

Even though Beijing’s monetary measures boosted some demand for small home appliances in China, the actual impact on ABS markets remained insignificant, according to market sources. Strict inventory management persisted across the region, with buyers opting for low stockpiles and avoiding major restocks.

The upcoming Spring Festival kept many buyers in China at bay. A source from a Taiwanese producer opined, “The Chinese market is quiet due to the upcoming holidays, with some factories starting their holidays early. Demand remains weak, and deals are limited.”

The holiday lull has not only dampened seller pricing but also cast a shadow over the near-term outlook. A Vietnamese trader noted, “Overall demand is weak, and the market is unlikely to accept higher prices. After the Spring Festival, prices are unlikely to rise significantly.” Another compatriot trader added, “Since most players are in a holiday mood, we expect the market will remain muted ahead of the Lunar New Year.”

Alongside persistent demand weakness, the three-week downtrend in styrene monomer prices—a key feedstock for ABS production—has further undermined sellers’ confidence. According to ChemOrbis Price Wizard, spot styrene prices dropped to $1000/ton CFR China as of January 10, marking the lowest levels since mid-December 2023.