In January, supported by concurrently strengthening prices of styrene and butadiene feedstocks, ABS/PS producers maintained upward adjustments to their quotations, sustaining a price-hike trend. The industry's bullish sentiment intensified, with spot prices climbing steadily to new phase highs, repeatedly testing the upper limits of the market. According to the latest data, ABS production capacity affected by shutdowns and maintenance this month reached approximately 5.17 million tons, a slight increase of 2.88% month-on-month. PS production capacity impacted by shutdowns and maintenance totaled about 4.45 million tons, rising 23.95% month-on-month.
January's industry operating rates still showed a decline compared to previous periods. Two plants—Shengxi'ao in Zhangjiagang and Chimei in Zhenjiang—have gradually resumed operations, while Yulong Petrochemical's unit saw a slight drop in load after an earlier increase. Multiple facilities remain shut down, including those at Daqing Petrochemical, Jilin Petrochemical, Sinopec INEOS Benling, Xinpu Chemical, Yike Chemical, and Shandong Haijiang. Zhejiang Petrochemical's production lines underwent scheduled maintenance and technical upgrades this month. Combined with the planned minor overhaul of a 50,000-ton unit at North China Huajin at month-end, these factors collectively contributed to an overall decline in industry operating rates.
Domestic PS market operating rates continued their downward trend in January. According to Table 2 data, facilities at Hebei Baosheng and Hengshui Baike remain in long-term shutdown. Beyond units that had previously reduced output, enterprises including Gulf Chemical, Ningbo Liwan, Lianyungang Petrochemical, Zhejiang Yishu, and Anqing Xingda have also implemented varying degrees of production cuts. Following Xinpu's shutdown, Shandong Lanhua and Lv'an Qingfeng subsequently suspended operations. In January, only Guangxi Changke completed a plant restart in mid-month. Although Xinghui Huancai and Huizhou Renxin gradually increased their operating rates after earlier reductions, the incremental supply was limited and insufficient to support the overall market supply side.
Looking ahead, affected by industry loss pressures, enterprises may reduce plant operating rates to control losses. Short-term shutdowns for some plants cannot be ruled out, and overall ABS/PS supply is expected to tighten. Concurrently, with the Spring Festival approaching, downstream pre-holiday stockpiling is nearing completion, raising expectations of weakening demand. The ABS/PS market is anticipated to continue tracking fluctuations in raw material prices. It is recommended to closely monitor upstream cost changes and downstream restocking patterns before the holiday to capitalize on market opportunities arising from supply-demand dynamics.
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