Over the past two days, the domestic ABS market has entered a phase of rapid decline, with mainstream grades generally falling by between 100 and several hundred yuan in a single day. This downturn has been driven by a combination of collapsing costs for crude oil and styrene, ample supply, sluggish downstream order intake, a decline in overseas demand, and shifts in the import-export landscape, causing prices to correct sharply from their previous highs. Based on SunSirs’ benchmark price as of 21 April, customs import and export data for 2026, and recent industry perspectives, the price transmission logic within the ABS supply chain is summarized as follows.

I. Price Trends for Core Products

On 21 April, SunSirs’ ABS benchmark price stood at RMB11,466.67 per ton, down 9.47% from RMB12,666.67 per ton on 1 April, but up 26.47% from RMB9,066.67 per ton on 1 March.

As a key raw material, the benchmark price of styrene on 21 April was 10,180.00 RMB/ton, down 2.30% from 10,420.00 RMB/ton on 1 April, but up 20.33% from 8,460.00 RMB/ton on 1 March.

II. Key Factors Behind Upstream and Downstream Price Movements

1. Cost Side: Falling Crude Oil and Weakening Styrene Lead to Rapidly Eroding Support

Styrene accounts for approximately 65% of ABS production costs, meaning cost pass-through is direct and significant. In March, influenced by geopolitical tensions in the Middle East, crude oil and styrene prices surged simultaneously, driving ABS prices to soar. Entering April, with the resumption of shipping through the Strait of Hormuz and the dissipation of geopolitical risk premiums, international crude oil prices plummeted, leading to a concurrent weakening in the prices of pure benzene and styrene. The rapid decline in raw material costs completely shattered the previously strong support, causing ABS to lose its upward momentum. Coupled with the excessive gains from earlier periods, prices entered a phase of concentrated correction.

2. Supply Side: Stable Operating Rates, Rising Inventories, Ample Market Supply

Continued supply-side ease has intensified downward pressure on prices. Domestic ABS plant operating rates have remained above 75%, with capacity from earlier maintenance periods gradually returning to service and output steadily increasing. Manufacturers’ inventories have continued to accumulate, market supply is ample, traders’ willingness to sell has increased, and market competition has intensified.

3. Demand Side: Sluggish Downstream Production, Low Acceptance of High Prices, and Sluggish Transactions

Persistent weakness on the demand side has become the core factor suppressing prices. Downstream sectors such as home appliances, automotive and toys are facing insufficient orders, with operating rates remaining at low levels. ABS procurement is primarily driven by small, essential orders and a focus on low inventory levels, with extremely low willingness to restock in bulk.

4. Overseas Impact and 2026 Import/Export Data

According to customs data, ABS exports for January–February 2026 total 70,300 tons, representing a year-on-year increase of 76.46%; exports in February stood at 28,500 tons, a month-on-month decrease of 31.99%, indicating a marked slowdown in export growth. On the import side, imports for January–February amounted to 108,200 tons, down 22.8% year-on-year, resulting in an improved domestic self-sufficiency rate. Entering April, new export orders continued to decline, and the momentum of external demand that had previously supported the domestic market weakened markedly. Coupled with limited impact from imported supplies, the market shifted to being driven by domestic demand, whilst insufficient domestic demand directly led to a sharp drop in prices.

III. Market Dynamics and Impact on the Industry Chain

The current ABS market presents a comprehensively weak landscape characterized by ‘falling costs, ample supply, sluggish demand and cooling external demand’, making prices prone to decline rather than rise. Profit distribution across the industry chain is undergoing rapid adjustment: profits in the upstream styrene segment have fallen, while those of ABS producers have been significantly squeezed. Cost pressures in downstream sectors such as home appliances and automotive have eased somewhat; however, due to sluggish end-user consumption, overall industry operating rates remain constrained.

IV. Market Outlook

In the short term, the weak trend in the ABS market is unlikely to change, and prices are expected to continue falling.

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