SE Asia PS, ABS markets face widening price ranges on competitive Chinese offers

Import PS and ABS markets in Southeast Asia continue to see competitive offers from Chinese suppliers, leading to wider price gaps across the region. The aggressive pricing has pushed lower-end values down week-over-week, creating further challenges for regional producers.

Chinese offers keep weighing on low ends

This week, traders in Vietnam reported that they received offers for the Chinese-origin at as low as $1170-1180/ton for GPPS injection, $1260-1270/ton for HIPS injection, and $1340-1350/ton for ABS injection, all on a CIF, cash basis. These levels led to week-over-week declines of $10-40/ton on the lower ends of the price ranges.

Amid strong competition from China and declining cost support from styrene, a Taiwanese PS producer slightly lowered its offers to the region while maintaining a noticeable premium over competitive Chinese cargoes.

Regional producers hold firm on high-end prices

Despite the aggressive Chinese offers, regional PS and ABS producers have largely kept their prices stable, forming the upper ends of the market price ranges. As a result, the price gap has widened to $140/ton for PS and up to $200/ton for ABS.

“Some regional suppliers are hesitant to lower their offers further, citing uncertainty in crude oil prices. However, we believe deals can be struck with $10-20/ton discounts depending on purchase volumes, given the ongoing competition from China,” said a Malaysian trader.

Meanwhile, downstream buyers remain cautious, avoiding new purchases regardless of price levels. “Sales pressure has intensified for suppliers as demand remains weak,” a source from a Taiwanese producer added.

Worsening fundamentals dampen outlook

Asian PS and ABS markets continue to struggle with supply pressures amid persistently weak demand. Most downstream factories are running at reduced operating rates due to sluggish end-user consumption, further exacerbating inventory concerns.

Adding to the bearish sentiment, the upcoming Ramadan period in Malaysia and Indonesia is expected to weaken demand further. “Buyers are staying on the sidelines, and fewer are even calling to inquire about offers,” remarked a source from a Taiwanese producer.

On the cost side, support for prices has started to fade as key monomer markets tracked losses in crude oil futures. Brent crude fell 3% week-over-week, settling at $74.04/bbl on February 27. CFR China-based spot styrene prices dropped by $30/ton, while ACN prices dipped by $10/ton over the week. Spot butadiene remained unchanged after a previous softening trend.

“All signs point to continued softening in the near term,” commented a buyer.