As April entered its latter half, domestic ABS market conditions continued to decline, with spot prices for most grades undergoing gradual downward adjustments. According to data from SunSirs' "Spot Connect" service, as of April 23, the average price for benchmark ABS products stood at 10,916.67 RMB/ton—a price level representing a 14.49% drop compared to the beginning of the month.
Supply Levels: In the middle of April, the domestic ABS industry witnessed a mix of scheduled maintenance shutdowns and production restarts, resulting in overall supply levels remaining stable at a relatively low base. Earlier in the period, Rongsheng Petrochemical increased its operating load, while Dalian Hengli entered a scheduled maintenance phase around mid-month. Currently, the industry's overall operating rate has edged up slightly to approximately 60%; the weekly average output is approaching 130,000 tons, and finished product inventories have risen to 200,000 tons. Looking ahead in the short term, production output is still expected to see a slight incremental increase, leaving the market generally well-supplied. On balance, the supply side of the ABS market is currently offering only flat, neutral support to spot prices.
Cost Factors: In early April, the fluctuating geopolitical situation in the Middle East led to divergent market sentiment among oil industry participants. Since mid-month, the market's core logic has rapidly shifted away from the previous "geopolitical conflict premium" toward a confluence of expectations for diplomatic de-escalation and bearish fundamental factors. Compounded by four converging negative factors—including the IEA's downward revision of supply-demand forecasts and a massive surge in API crude oil inventories—international oil prices suffered a sharp decline. Impacted by this downturn, the three upstream raw materials within the petrochemical chain—which feed into ABS production—all experienced simultaneous price drops. Specifically regarding Acrylonitrile (AN): although industry operating rates remain low and the volume of incoming shipments is limited, contracting domestic demand and sluggish spot trading activity have dragged down the price center of gravity, creating a market pattern characterized by weakness in both supply and demand, and consequently, falling prices.
The Butadiene market also witnessed a significant decline. The gradual erosion of cost-side support and the lack of momentum from downstream demand have emerged as the primary factors driving market trends. Even with spot supplies remaining relatively tight overall, this tightness has proven insufficient to offset the downward pressure stemming from weak demand; the industry as a whole is currently characterized by a dynamic of "strong supply, weak demand," leading to a phase of price correction and retreat.
Regarding Styrene market conditions, prices continued their downward trajectory. On the raw material front, the short-term outlook for Benzene suggests a potential reduction in supply—particularly as imports are expected to continue declining—which is trending the domestic pure benzene supply-demand balance toward a stronger position; however, this internal strength remains insufficient to counteract the bearish influence exerted by the sharp plunge in crude oil prices. Currently, styrene consumption lacks effective drivers, and the market lacks sufficient momentum to sustain its upward trajectory; consequently, prices may find themselves in a state of limbo.
Regarding demand: As late April commenced, operating rates among downstream ABS enterprises leveled off. 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 sentiment shifted from "chasing gains" to "selling into weakness," leading to a significant decline in restocking and position-building activities. Traders holding profitable positions began offering price concessions to offload inventory, thereby dragging down the overall price center. Current inventories of finished ABS products continue to rise, while resistance among buyers toward high-priced supplies is intensifying. All things considered, demand-side fundamentals are providing scant support to the ABS market.
In the early part of late April, domestic ABS market prices continued their downward trend. Production loads at polymerization plants remained largely stable, ensuring that market supply remained ample. Meanwhile, the prices of all three key raw materials declined in unison. The current ABS market faces a dual bearish pressure: a retreat from previously high cost levels coupled with weak demand. Given the substantial production capacity base, the impact of concentrated plant maintenance on curbing inventory accumulation has been limited. Consequently, spot prices are trending downward from their recent highs, and trading activity within the market remains sluggish.
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