Asian PS, ABS markets on downhill from April-peaks amid feedstock slump

Following a prolonged uptrend that began in early January and pushed PS and ABS prices in China and Southeast Asia to multi-year highs by around early April at the heat of the US-Iran war , both markets have moved steadily downhill since mid-April. The correction has been mainly driven by a slump in styrene and butadiene costs, and persistently weak consumption across key downstream sectors, such as home appliances and consumer goods.

ABS is under bigger downward pressure

In China, weekly average import PS prices declined for the fourth consecutive week by a cumulative of 5-7%from their highest levels seen in early April since September 2014 for GPPS inj. and May 2021 for HIPS inj., according to the ChemOrbis Price Index. Import ABS prices in China also came off by 6% from the highest levels of the past four years.

China’s domestic markets also witnessed sharp corrections throughout the four-week downturn. Domestic PS prices posted cumulative losses of around 4-5%, while ABS inj. grades recorded significantly steeper declines of over 20% amid rapidly falling feedstock costs and deteriorating downstream demand conditions.

Meanwhile, import PS prices in Southeast Asia also posted a total loss of 7-8% in the past four weeks, moving further away from four-year highs recorded earlier in April. Similarly, ABS prices in Southeast Asia failed to preserve their four-year peaks, with prices weakening 4% during the same period.

Costs: Styrene slumps, but butadiene collapses

The sharp decline in upstream energy and monomer markets remained one of the key bearish drivers for Asian PS and ABS markets.

Before the latest rebound, crude oil futures had fallen significantly amid hopes for easing geopolitical turmoil in the Middle East, while broader macroeconomic uncertainty continued pressuring sentiment across commodity markets. The weakening energy complex quickly translated into lower feedstock values, removing much of the cost support that had previously underpinned the prolonged rally earlier this year.

Styrene monomer prices continued to trend downward, falling sharply amid weaker derivative demand and softer crude oil values. The 8% total decline in styrene directly pressured PS markets across China and Southeast Asia, prompting regional suppliers to revise offers lower to remain competitive.

Meanwhile, ABS markets faced even stronger pressure as butadiene prices extended their steep downward spiral. After surging to record-high levels in late March, butadiene values corrected aggressively by 30% over recent weeks, significantly reducing production costs for ABS producers.




Weak consumption pressures sentiment, particularly monsoon for SEA

In addition, regional buying interest remained subdued as downstream demand failed to show any meaningful recovery. Market participants across China and Southeast Asia continued to report weak order intake from end-user sectors, particularly home appliances, electronics, and consumer goods. The persistent slowdown in manufacturing activity and cautious consumer spending further dampened confidence, preventing buyers from rebuilding inventories aggressively.

Most converters maintained strictly need-based purchasing strategies, preferring to secure only small volumes to cover immediate manufacturing requirements. Expectations of further price reductions also encouraged buyers to stay on the sidelines, especially as upstream markets continued to soften. Several players noted that even visible price cuts failed to stimulate trading activity meaningfully, highlighting the depth of the current demand weakness. A Vietnamese converter noted, “We received offers with $20/ton drops but still keep purchases need-based as further cuts are awaited.”

In Southeast Asia, seasonal factors added another layer of pressure to the market. The approaching monsoon season might slow manufacturing activity further, particularly in consumer-related sectors, reinforcing cautious buying behavior across the region. Thus, trading activity remained thin, while overall sentiment continued to lean bearish despite slightly tight ABS availability from certain suppliers.

Competitive Chinese cargoes undermine SEA markets

Competitive Chinese cargoes remained a major pressure point for Southeast Asian import markets. Buyers kept resisting higher-priced offers from traditional suppliers, particularly Taiwanese and ASEAN producers, while increasingly favoring more attractively priced Chinese material. In Vietnam, the low end of the import range was heavily pressured by deeply discounted Chinese cargoes to Vietnam, with reductions reportedly reaching $100/ton.

Market participants noted that China’s growing presence in the styrenics arena has intensified regional competition. According to a Malaysian trader, Taiwanese offers remained uncompetitive compared with Chinese material, while some GPPS deals from China were concluded below the market floor. The trader added that purchasing from China had become “the only viable option” for some downstream converters struggling to maintain operations amid sluggish demand conditions.

The mounting pressure from Chinese cargoes forced other regional suppliers to make downward adjustments, with GPPS inj. facing larger declines, as suppliers attempted to narrow the pricing gap with Chinese material and defend market share in an increasingly competitive environment.