During the first half of April, the domestic ABS market experienced a downturn from previously high levels, with spot prices for most grades undergoing downward adjustments. According to data from SunSirs' "Spot Connect" service, as of April 14, the average price for benchmark ABS products stood at 12,216.67 RMB/ton—a decline of 4.31% compared to the beginning of the month.
Supply Levels: Entering April, maintenance shutdowns within the domestic ABS industry became relatively concentrated. During this period, operating rates at various enterprises—including Zhejiang Petrochemical and Yike Chemical—were reduced. By mid-April, the industry's overall operating rate hovered around 59%, with the weekly average output falling below 130,000 tons; meanwhile, finished product inventories continued to accumulate, exceeding 195,000 tons. In the short term, production volumes are expected to remain relatively stable, causing the market supply dynamic to shift from a "tight balance" toward a state of relative abundance. Overall, the support provided by the supply side for current spot prices is considered moderate.
Cost Factors: Since early April, the geopolitical situation in the Middle East has remained volatile, leading to divergent market sentiment among industry participants. An unexpected buildup in U.S. crude oil inventories—coupled with the firm stance of OPEC+ regarding production cuts—triggered a simultaneous sharp decline in crude oil futures. Consequently, the three key upstream feedstocks for ABS (also petrochemical products) have either stalled in their upward trajectory or begun to decline. Specifically, the domestic market for acrylonitrile has seen a gradual contraction in demand, with insufficient buying interest in the spot market. Sluggish transaction volumes have stifled the market's ability to continue trending upward, and quoted prices in certain northern regions have even retreated slightly. Amid localized sales pressures, market participants are currently harboring bearish expectations.
The butadiene market has put an end to its previous phase of unilateral, rapid price surges. Downstream enterprises—such as those producing polybutadiene rubber—have scaled back their "rigid demand" (essential) purchases of butadiene. Much like acrylonitrile, domestic market demand remains weak; consequently, localized supply tightness and a scarcity of imported materials are proving insufficient to sustain merchants' attempts to quote high prices. Over the past fortnight, the market's price center of gravity has continued to drift downward. Moving forward, it is recommended that market observers closely monitor fluctuations in feedstock costs, the progress of plant startups and maintenance shutdowns, and changes in actual transaction volumes among downstream buyers.
The styrene market has experienced a volatile downward trend. Geopolitical tensions have remained fluid, causing crude oil prices to fluctuate following their initial decline. Although overseas pure benzene production facilities have reduced their operating loads, market sentiment remains divided. Downstream buyers are exhibiting strong resistance to high prices; furthermore, the "3S" industry (styrene-based resins) continues to suffer from negative cash flows, leading to a reduction in operating rates within that sector. Currently, the market lacks strong directional guidance; therefore, styrene prices are expected to largely track the fluctuations of crude oil prices in the short term. Regarding Demand: Following the short holiday in April, operating rates among downstream ABS enterprises fell short of expectations. Consumption within the key terminal sector—electrical appliance casings—remained lackluster, and there was no visible improvement in the profitability of end-user firms. Market enthusiasm for chasing rising prices has cooled, leading to a reduction in restocking and position-building activities. Some traders holding profitable positions have begun offloading inventory at lower levels, thereby dragging down the overall price center. Currently, finished ABS inventory levels continue to rise, and resistance among buyers toward high-priced supplies is intensifying. Overall, demand-side factors are providing weak support for ABS market performance.
During the first half of April, the domestic ABS market experienced volatile fluctuations with a downward bias. Production loads at polymerization plants were scaled back, yet market supply remained ample. The market for the three key raw materials also softened. The current ABS market faces a dual bearish pressure: a retreat from previously high cost levels combined with weak demand. Given the substantial production capacity base, concentrated maintenance shutdowns have had only a limited effect on curbing inventory accumulation. At present, spot prices are trending downward from their recent highs, and trading activity within the market remains sluggish.
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