[ABS Weekly Review] ABS Lacks Positive Support, Prices Continue to Decline This Week

The hot topics of the week:

1） Market prices fell this week

2） Industry output declined this week.

3） The inventory of the petrochemical plant increased this week.

2. ABS Market Trend This Week:

During this period (August 28, 2025 - September 4, 2025), ABS prices have declined across the board. At the beginning of the week, manufacturers lowered their listed prices, and market transactions were very sluggish with many bearish factors in the market. Traders offered discounts to promote sales; home appliance manufacturers maintained a generally calm and observant stance, with a clear state of oversupply in the ABS market. This week, manufacturers' profits are close to the cost line, and companies that source raw materials externally are on the brink of loss. Some manufacturers continue to operate at reduced capacities, with significant cost pressure within the industry. It is expected that there is limited room for further price drops, but due to limited reduction in volume, the industry still faces significant supply pressure, making price increases challenging. Prices are fluctuating at a low level, with a downward trend. In terms of market prices, domestic materials range between 8,900-9,600 RMB/ton, while composite materials range between 9,800-10,350 RMB/ton.

Weekly Domestic ABS Market Price Comparison Table

3. Raw material market trends this weekMomentum:

3.1 Styrene : The probability of crude oil strengthening is low, and there is no effective improvement expected in the supply and demand of pure benzene, so there is still no effective support from the cost side. The supply and demand of styrene itself have slightly improved, with some equipment experiencing short-term shutdowns and planned maintenance leading to a reduction in domestic supply. On the demand side, as some downstream factories in the northern region resume operations, there is room for incremental demand overall. There is an expectation of a temporary tight balance in the supply and demand of styrene, but the support for styrene prices is limited. It is expected that styrene will mainly exhibit narrow fluctuations next week, with a slight rebound in price anticipated, and the spot price in Jiangsu is expected to be between 7000-7150 yuan/ton.

3.2 Butadiene:Next week, domestic butadiene production is expected to slightly rebound. However, there is no significant inventory pressure on the supply side. The demand in the northern market remains relatively strong, and the firm prices from suppliers provide support to the spot market. However, as the price gap between the northern and southern regions widens, there is a possibility that East China supplies may be supplemented by northern shipments. Additionally, some pre-holiday supplies being sold may somewhat restrict the market's upward potential. Considering the overall market expectations, it is anticipated that the domestic butadiene market will maintain a consolidation trend next week.

3.3 Acrylonitrile: The supply and demand relationship for acrylonitrile is expected to remain weak in the next period, with limited market growth. Key points to focus on: 1. Supply side. Overall, it remains relatively abundant, with a north-south divide. Supply in East China is temporarily reduced, while the northern region remains basically balanced. 2. Demand side. The operating rates of the three main downstream industries are expected to fluctuate slightly, with no significant increase in consumption. In the long run, there is still a stocking demand before the National Day holiday. 3. Cost side. Propylene prices are running strong. 4. Sentiment side. Suppliers may continue to support prices upwards due to low inventory and high costs, but insufficient spot cost follow-up will restrain market growth.

4. Market Outlook: It is expected that ABS production and sales will continue to be in surplus in the next period, with overall transactions driven by just-in-time demand. Focus points: 1. Supply side. Tianjin Dagu is expected to increase production next week, leading to an overall increase in industry supply. 2. Demand side: Currently, it is still the off-season for ABS procurement, and demand expectations are weakening. 3. Cost side. Styrene and butadiene prices are narrowly fluctuating, and acrylonitrile is relatively weak. It is expected that the cost side will provide average support next week. Sentiment: With expectations of new capacity release and consumption continuing in the off-season, market pessimism is prevalent. It is expected that the ABS market prices will remain narrowly fluctuating in the near future, or show a slight downward trend in certain areas.