During the first quarter, the domestic ABS market experienced a notable shift in focus driven by demand falling short of expectations combined with persistent oversupply conditions. Market activity slowed considerably during January and February, with trading volumes remaining subdued and prices under pressure. However, momentum began to accelerate in March as seasonal factors and improving sentiment started to take effect. By the end of March, the market was significantly influenced by rising styrene prices, which prompted increased restocking demand. The South China market led the recovery, with prices rebounding first, followed by the East China market as the upward momentum spread. As of mid-April, the mainstream market remained characterized by an exploratory trend, with participants cautiously testing price levels. Nevertheless, the tug-of-war between long and short positions remained evident, and industry sentiment continued to reflect a degree of uncertainty and mixed expectations.
Recent Factors Driving ABS Market Strength:
Tianjin Dagu Chemical began its scheduled maintenance turnaround on April 12, with the shutdown estimated to last approximately 10 days. This production reduction has helped ease supply pressure in the market, providing support for prices.
All three major upstream raw materials—styrene, acrylonitrile, and butadiene—have experienced simultaneous price increases. The styrene market, in particular, has seen significant gains, creating strong cost-push support for ABS prices.
Market Analysis and Forecast
Over the past week, multiple factors have influenced market dynamics. On one hand, strong crude oil prices coupled with rising feedstock costs—especially for styrene—have led to the withdrawal of lower-priced offers in the mainstream ABS market, creating an atmosphere of upward price pressure. On the other hand, supply constraints resulting from plant maintenance have made merchants reluctant to sell at lower prices, contributing to significant upward adjustments in market offers. However, downstream manufacturers have been slow to pass on these higher costs to end customers, and bearish sentiment persists alongside the upward momentum. Actual market participation remains limited, with many buyers adopting a wait-and-see approach. Looking ahead, it is expected that the short-term ABS market will focus on digesting recent gains at higher price levels. As producers continue to push prices upward, some offers may see further increases,
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