In mid-February 2025, the Asian Acrylonitrile Butadiene Styrene (ABS) market remained stable as supply and demand remained balanced. Despite earlier fluctuations in upstream costs, ABS prices exhibited limited movement due to steady production rates, ample inventories, and a slow post-holiday demand recovery.

The Chinese ABS industry maintained a stable operating rate in early February, with plant utilization hovering around 73-74%, unchanged from pre-holiday levels. Average weekly production ensuring steady market availability. Meanwhile, inventory levels at polymerization enterprises climbed, reflecting a slight accumulation of unsold stock.

Although petrochemical producers had seen healthy pre-holiday sales, recent shipping delays have constrained movement in the market, leading production companies to relinquish early-month gains. With no major disruptions in supply, the market continues to experience ample product availability, providing only moderate support for ABS prices.

The three primary upstream materials of ABS, acrylonitrile, butadiene, and styrene, showed divergent trends in February, resulting in an overall neutral impact on production costs.

Acrylonitrile prices remained firm due to persistent low industry operating rates and limited inventory. Supply recovery has been slow, keeping the market at relatively high levels. However, post-holiday demand from downstream sectors has weakened, leading to a steady rather than rising price trend. Butadiene continued to show strength at elevated levels. Despite a tight supply situation before the holiday, the sustained increase in spot prices has led to resistance from downstream buyers. Market participants anticipate a potential relaxation in supply, which has created a temporary standstill. Styrene prices initially climbed but later retreated in early February. Pre-holiday inventory accumulation at ports, coupled with declining crude oil prices, weighed on styrene values. This downturn in styrene prices added downward pressure on ABS production costs.

The demand side of the ABS market faced challenges following the Spring Festival holiday in China. Export-driven demand for front-end household appliances had been largely met in January, leading to reduced purchasing activity across the regional market. Furthermore, the post-holiday resumption of operations at downstream factories has been slow, with production loads remaining at modest levels in the region.

Additionally, some terminal manufacturers had increased procurement in response to rising ABS costs in previous months, leaving them with existing inventories to deplete before initiating new purchases. This sluggish pace in demand recovery has constrained market momentum and limited price movements in Asia.

The ABS market’s stable trend is expected to persist in the near term. While upstream costs remain mixed, supply-side pressure has slightly increased with higher inventory levels. On the demand front, a gradual recovery is necessary before the market can regain its strength.

As per ChemAnalyst, it is anticipated that the ABS market will continue to consolidate in the short term, with price fluctuations remaining limited.