Polystyrene (PS) markets have also recorded strong gains during the same period, climbing by roughly 26–30% and reaching multi-year highs in several regional markets.
The sharp escalation in crude oil and key feedstock prices has rapidly increased production costs, prompting producers to raise offers aggressively. However, the speed and scale of the increases have made it difficult for buyers to keep pace. Many converters have delayed new purchases despite tightening inventories, citing intense margin pressure and uncertainty over feedstock volatility and near-term price direction.
Rising energy and feedstock costs drive the rally
The surge in styrenics markets has largely been fueled by the sharp rise in upstream energy and feedstock prices. Brent crude oil futures moved above $100 per barrel for the first time since 2022, reflecting growing geopolitical tensions in the Middle East and concerns over supply disruptions.
The increase in energy prices quickly pushed petrochemical feedstock costs higher across the region.
Styrene prices followed the trend, recording weekly gains of around $120/ton and reaching their highest levels since mid-2022, according to ChemOrbis data. Other key raw materials for ABS also climbed significantly. Butadiene surged by about $580/ton, while acrylonitrile (ACN) increased by roughly $100/ton.
Higher feedstock costs push resin prices upward
The rapid increase in upstream costs quickly translated into higher resin prices in Asian styrenics markets. Producers raised offers sharply for both PS and ABS as they attempted to reflect rising replacement costs and tighter feedstock economics.
Import markets in China and Southeast Asia recorded notable increases throughout the week.
China’s import PS market climbed to levels not seen in several years. GPPS prices reached their highest level since September 2014, while HIPS prices rose to their highest point since July 2022.
In Southeast Asia, import PS prices also moved significantly higher, pushing regional averages to their highest levels since mid-2022.
ABS markets recorded even stronger gains. Import prices in both China and Southeast Asia increased sharply compared with the previous week, lifting weekly averages close to four-year highs.
China’s domestic markets followed a similar trend. Local PS prices rose strongly week on week, while ABS recorded even steeper increases as sellers moved quickly to adjust prices in line with rising feedstock costs. Weekly averages for both resins in the domestic market have now returned to levels last seen around mid-2022.
Converters struggle with rising costs
Despite the sharp price increases, downstream buying activity remained limited as converters tried to cope with the highly volatile market environment.
Many processors preferred to rely on existing inventories rather than purchase new material at elevated prices, expecting the market to eventually stabilize once feedstock volatility eases.
One manufacturer explained that his company has enough inventory to continue production for about a month but does not plan to replenish stocks immediately because raw material prices have risen too quickly while finished product prices cannot be adjusted at the same pace.
The sharp rise in resin prices has also complicated order planning for converters. Although demand for finished goods remains relatively stable, many manufacturers are becoming cautious about accepting new orders.
A converter in Vietnam noted that some customers are attempting to increase order volumes, but manufacturers are reluctant to commit because raw material prices are changing too rapidly. Industry participants warn that if the rally continues, some processors may consider temporary production shutdowns as a last resort, highlighting the growing pressure across the regional styrenics supply chain.
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