China’s local PS, ABS prices rise after holiday

Domestic PS and ABS markets in China saw price increases following the Golden Week holiday, driven by stronger feedstock costs. Before the holiday, local PS prices had remained stable for three weeks, while ABS prices saw some upward adjustments in the final week leading up to the break.

This week, a source from a local PS producer reported that their prices were CNY100-150/ton ($14-21/ton) higher compared to the pre-holiday levels at CNY10,250/ton ($1283/ton without VAT) for GPPS inj., and CNY100-200/ton ($14-28/ton) higher at CNY10,500/ton ($1315/ton without VAT) for HIPS inj., both on an ex-warehouse, cash including VAT basis.

Another producer reported a sharp rise in ABS offers this week, with prices increasing by CNY400-500/ton ($57-71/ton) compared to their latest offers before the holiday, now standing at CNY11,800/ton ($1,478/ton without VAT) with the same terms.

Higher feedstocks outweigh supply-demand dynamics

Chinese PS and ABS markets experienced a tug of war between buyers and sellers in the weeks before the holiday. Suppliers were reluctant to cut their prices despite weak supply-demand dynamics, claiming the offer levels were already quite low. However, rising spot styrene and crude oil prices gave sellers the leverage to end the stability once they returned to their desks.

Last week, spot styrene prices rose by $40/ton from a week earlier to $1100/ton CFR China, recovering from eight-month lows. Spot butadiene prices with the same terms remained flat at their $1580/ton, holding at three-month highs after a month-long rally. ACN prices were also stable at $1145/ton on similar terms. Meanwhile, December Brent crude oil futures posted a nearly 13% increase compared to last week, settling at $80.93/ton on Monday, October 7.

Despite the latest increases, concerns linger over whether the uptrend can be sustained, as the ongoing oversupply in the PS market and persistently weak demand across the supply chain remain significant challenges.