Losses trigger production Cuts and Chinese ABS Prices see partial recovery

China ABS capacity expansion ground to a halt in 2026 after three years of rapid growth, with no new plants coming online and only a 100,000 t/y expansion at Sinopec Shanghai Gaoqiao. Deepening losses, which averaged Yuan -971/t by mid-September, forced major producers to cut output, driving prices up 30% from July to September.

China's ABS capacity expansion came to a halt in 2026 after three years of rapid growth, leaving the industry to grapple with oversupply and deep losses. In 2026, no new ABS plants came online, with only Sinopec Shanghai Gaoqiao Petrochemical expanding its capacity from 200,000 t/y to 300,000 t/y. Total