ABS Raw Material Price Surge Impacts Core Tube Industry: Dual Challenges of Cost Pressure and Industrial Upgrading
In March 2026, China's ABS core tube industry is undergoing a major shakeup triggered by sharp fluctuations in raw material prices. As the core material for ABS pipes, ABS resin prices began their upward trajectory in late December 2025. By February 2026, emulsion-processed ABS prices in China's East China region had surged 15%-18% compared to the start of the year, with premium imported grades seeing increases exceeding 20%. This directly pushed up core tube production costs by approximately 12%-15%. This raw material storm, fueled by geopolitical tensions, supply chain restructuring, and demand recovery, is reshaping the industry landscape.
Three key drivers propel the ABS raw material surge:
Geopolitical Premium: Since December 2025, conflicts in Venezuela and elsewhere have driven up international crude oil prices. Port inventories of styrene have plummeted while export orders surged, causing prices to jump 28% within two months. Butadiene prices soared from November 2025 to January 2026, hitting a three-year high, fueled by recovering synthetic rubber demand and concerns over natural rubber supply.
Structural Supply Chain Discrepancies: Although China's total ABS production capacity exceeds 6.8 million tons annually, self-sufficiency in high-end specialty grades remains below 40%. Heavy imports in 2025—primarily from Japan, South Korea, and Taiwan—have weakened domestic enterprises' bargaining power and delayed cost pass-through. For instance, Zhejiang Petrochemical's ABS price hikes struggle to offset rising raw material costs.
Demand-Side Expectation Reversal: In Q4 2025, oversupply pushed ABS prices below historical lows, triggering bottom-fishing stockpiling by downstream buyers and traders. By January 2026, appliance production ramp-ups and pre-Chinese New Year inventory buildup created temporary supply-demand mismatches. Apparent consumption surged year-on-year, driving spot prices higher.