[recycled abs daily review] styrene surges significantly, cost support for recycled abs strengthens

The domestic recycled ABS market is operating in a range-bound manner, with mainstream quotes remaining stable and regional price differences consistent. The price for Laizhou door panel titanium white secondary crushed material is 8,200-8,320 yuan/ton; the price for imported high-impact black pellets in Guangdong is 9,220-9,480 yuan/ton; and the price for Shandong is 8,150-8,330 yuan/ton.

On the cost side, support has strengthened significantly. Recycled ABS scrap from home appliances and electronics is holding firm at a high level, with purchase prices at RMB 4,410–4,720/ton. Sorting and recycling costs account for 45% of total costs, while utilities and modifying additive expenses remain stable. Processing margins continue to be squeezed, and manufacturers have little willingness to cut prices sharply. On July 14, the main styrene futures contract surged significantly. The East China spot benchmark price for virgin ABS reached RMB 9,483.33/ton, and the price spread between virgin and recycled material narrowed to RMB 2,060/ton, down RMB 110 from the previous month. Demand for recycled substitution continues to weaken.

From the perspective of facilities and supply-demand, the national average operating rate of recycled ABS processing plants is 47%. With environmental protection controls becoming routine and persistent high temperatures, crushing lines in many regions have reduced loads, and there has been no new capacity added. Finished-product inventories at manufacturers remain at 11–13 days. Producers are flexibly adjusting production schedules to control shipment pace, with no concentrated dumping of goods. Downstream appliance, small-appliance, and luggage injection-molding sectors remain in the off-season; end-user orders have declined, and product manufacturers are operating at low load, making only small replenishment purchases as needed. Stockpiling behavior has completely disappeared.

Today, the overall trading volume in the market is quiet, with only scattered small orders from regular customers, mostly under 10 tons per order. Downstream buyers are generally pressing for lower prices, with negotiation discounts ranging from 70 to 110 yuan per ton. There is a clear divergence in market sentiment; upstream recycling plants are resisting price declines due to high raw material costs, while downstream manufacturing plants are bearish on terminal demand and are holding cash to wait and see. Middlemen are adopting a low-risk strategy of buying low and selling low.

ABS has no independent futures contract. The upstream styrene main contract closed at 8,229 yuan/ton, up 506 yuan on the day, a gain of 6.37%. The favorable cost-side transmission to recycled spot prices was limited and failed to boost transactions.

Post-market outlook: In the short term, recycled ABS is expected to remain in a range-bound consolidation pattern. The sharp rise in styrene prices, combined with high feedstock costs, will provide downside support and limit further declines, but weak end-user demand will cap the upside. Without a recovery in downstream orders, market activity is likely to remain subdued.

(This article's data is compiled from publicly available information for market reference only and does not constitute any investment or trading advice.)