Asia’s PS and ABS markets hit multi-year lows amid cost-led weakness

The Asian PS and ABS markets have extended their decline, with prices slipping to multi-year lows. While falling upstream costs set the tone, the real driver was the market’s fragility: oversupply and muted demand meant prices reacted immediately and sharply to any weakness. Even the traditional high season failed to stir buying interest, leaving sellers under pressure.

Brent crude futures fell by about 2% week-on-week as of September 4, reinforcing bearish sentiment. Spot styrene slid to a four-month low, while ACN hovered near a five-year trough. With costs offering little support, both PS and ABS markets struggled to find demand, deepening the downward spiral.

Weekly drops and multi-year lows

PS and ABS prices in China continued their slide in the week ending September 5, with local GPPS injection down CNY175-200/ton ($25-28/ton) and HIPS easing CNY100/ton ($14/ton), hovering around five-year lows. Local ABS injection also lost ground, falling CNY50-80/ton ($7-11/ton) and approaching two-year troughs. Imports followed the same path, as Taiwan-origin PS slipped $20/ton and ABS from Northeast Asia and ASEAN fell $10-30/ton, leaving sellers under pressure.

In Southeast Asia, PS imports were mostly steady or slightly softer, with NEA-origin cargoes down up to $20/ton and HIPS edging $10/ton lower. ABS imports fell around $20/ton, with Chinese-origin material continuing to set the floor for prices.

Oversupply and soft demand heighten market vulnerability to cost declines

Players said the real driver behind the declines was market fragility. Oversupply combined with muted seasonal demand meant that any weakness in feedstock costs immediately translated into price drops.
In China, traders described sales as “fewer and sporadic,” with buyers purchasing only on a need-only basis. Local transactions remained thin, keeping downward pressure on prices despite ongoing operations at downstream factories.

A Taiwanese producer’s source added that falling styrene values and ex-factory price cuts forced sellers to lower PS offers further, even with prices hovering around multi-year lows. “There are no positive factors in the market recently,” he said, echoing the cautious stance of buyers who are waiting for more attractive offers in the coming weeks.

Chinese-origin competitiveness continues to weigh on SEA markets

Southeast Asian import markets remained under pressure as competitively priced Chinese-origin cargoes continued to dominate the scene. Traders in Vietnam noted that low-end price levels were effectively dictated by Chinese offers, which are substantially lower than those from other Northeast Asian sources.

“Chinese-origin material is keeping the market on edge, and prices could slide further,” said a Vietnamese trader. “The region’s styrenic markets are now hovering at more than five-year lows, and aggressive Chinese competition is making it difficult for other suppliers to gain traction.”