[Recycled ABS Supply-Demand Cost Analysis] Trading Atmosphere Is Light, Short-Term Prices Remain Weak and Stable

From July 3 to 9, the overall trading of the recycled ABS hard plastic market was sluggish, with a stable supply of used ABS materials from home appliance disassembly. The upstream styrene slightly increased, supporting the bottom prices of new materials; however, the traditional off-season in the downstream demand from home appliances and automotive interior industries suppressed the demand for recycled ABS, leading to a stagnant price trend. As a result, industry processing profits remained at a low level.

Raw material prices: The average weekly price of white shell ABS crushed raw material in East China is 4720 yuan/ton, a decrease of 70 yuan/ton compared to the previous week; black vacuum-formed waste ABS raw material is 4410 yuan/ton; first-grade titanium dioxide modified recycled ABS pellets are 7530 yuan/ton, and high-impact black recycled ABS pellets are 9350 yuan/ton, with a weekly mainstream transaction fluctuation range of ±100 yuan/ton. The domestic dismantling and shipment of discarded household appliances is stable, with ample inventory of raw materials in the circulation link. Recyclers are focused on pressing prices, causing a slight downward shift in the raw material market.

Route costs and processing margins: The all-in processing cost for recycled ABS color sorting, impurity removal, modification, and pelletizing is RMB 815–875/ton. This week, feedstock prices declined while finished product quotations remained sluggish, with the industry’s average processing margin at RMB 180–240/ton. The vast majority of small and medium-sized rigid plastic recyclers are operating at break-even. High-end, high-impact modified specialty recycled ABS pellets, benefiting from product premiums, are more profitable than ordinary general-purpose grades.

Operating rates, maintenance, and supply: The national average operating rate of the recycled ABS pelletizing industry was 34.0%, down 1.8 percentage points month-on-month. In Shandong and Hebei, a number of major rigid-plastic processors voluntarily reduced operating loads to 25%–30% due to insufficient end-user orders, with no scheduled plant maintenance planned. On the virgin ABS raw material side, spot styrene prices edged up slightly, while spot prices for general-purpose virgin ABS in East China stood at RMB 9,600/mt, with ample market supply. At Yantian Port in South China, weekly arrivals of imported recycled ABS crushed material totaled 0.41 kt, mainly consisting of overseas waste from dismantled household appliances, with sufficient replenishment of low-end cargoes.

Inventory, downstream demand, and price spread transmission: Finished goods inventory at recycled ABS producers stands at 11–13 days, the highest among the four major recycled plastics categories, indicating clear pressure on shipments. Downstream manufacturers of home appliance housings, children's toys, and automotive interior products have reduced production schedules during the off-season, all adopting sporadic rigid-demand procurement with no bulk stockpiling. The price spread between virgin and recycled ABS is RMB 2,070/ton, narrowing by RMB 100/ton month-on-month, weakening the willingness to substitute recycled material in procurement. Rising upstream chemical monomer costs cannot be passed on to downstream end users, while weak demand remains the core constraint on market conditions.

Short-term outlook: The off-season for downstream household appliances and automobiles will likely continue, finished product inventories in the industry remain relatively high, and recycled ABS is expected to stay range-bound with a weak and stable tone in the short term, with limited room for recovery in processing margins.

(The data in this article is compiled from publicly available information and is for market reference only. It does not constitute any investment or trading advice.)