Price trend

Recently, the domestic ABS market is weak, and the spot price has been reduced in a narrow range. According to data monitoring by the Business News Agency, as of March 27, the average price of ABS sample products was 11825 yuan/ton, a decrease of -0.07% compared to the average price level at the beginning of the month.

Cause analysis

On the supply side: The current high load situation in the ABS industry has increased, and the overhaul of LG Huizhou, Zhejiang Petrochemical and other enterprises has been completed, with the overall operating rate rising to about 93%. There is abundant on-site spot supply, coupled with the entry of new materials into the market before, intensifying on-site competition and high pressure on the supply side. Domestic inventories have accumulated, putting pressure on factory prices of petrochemical plants.

In terms of raw materials: Recently, the overall performance of ABS upstream three materials has increased and decreased. The acrylonitrile market was weak last week. The low price of raw materials fell, and the cost of acrylonitrile continued to decline; In the early stage, enterprises such as Korol and SECCO have limited relief from pressure on acrylonitrile supply due to load reduction. Currently, there is insufficient market demand, and the acrylonitrile market is weak and stagnant.

Last week, the domestic butadiene market continued its downward trend. During the week, the supply price of Sinopec, a major producer, was slightly lowered, and many enterprises in the Northeast sold their products at low prices, resulting in a negative supply side. At the same time, the downstream synthetic rubber market continued to decline, with downstream profits under pressure and inquiry intentions depressed. It is expected that the domestic butadiene market will continue to be weak in the short term.

The styrene market in Shandong rose in a narrow range last week. Spot demand for styrene was moderate, international oil prices rebounded from low levels, and cost support slightly recovered. In the early stage, the high inventory at the port has also been smoothly removed in the near future, and the basic situation of styrene has gradually improved. It is expected that the domestic styrene market may strengthen in the short term.

Demand: Recently, downstream factories, including the main terminal appliance industry, have been generally proactive in stocking, and some manufacturers still have raw material inventory to digest. Overall demand improvement is limited, actual transaction volume is weak, and the smoothness of on-site delivery is poor.

Aftermarket Forecast

Recently, the overall trend of ABS upstream three materials is weak, which generally supports the cost side of ABS. The high starting point of petrochemical plants has increased, and the market supply continues to be abundant. Demand side support is poor, merchants’ mentality is weak, and operations tend to yield profits and take orders. It is expected that the ABS market will continue to operate weakly due to the impact of supply and demand contradictions in the short term.