In the first half of April, the domestic ABS market saw a high rise, with spot prices of various brands increasing. According to the Commodity Market Analysis System of SunSirs, as of April 15th, the average price of ABS sample products was 12,350 RMB/ton, with a price increase or decrease of +1.54% compared to the beginning of the month.
Supply level: In the past half month, the domestic ABS industry has taken on the pattern of load reduction and adjustment in the early stage, with an operating rate of nearly 62% at the beginning of the month. With the centralized maintenance of enterprises such as PetroChina, Tianjin Dagu, and Shandong Haijiang, the industry load has dropped to around 56% by mid month.
The low load of ABS aggregation enterprises continues, and the production continues to be at a low level. In the past two weeks, the total domestic production has reached 186,100 tons, and the market supply has tightened, leading to a decrease in inventory levels among production enterprises. The overall support from the supply side for ABS spot goods is strengthening.
Cost factor: In the first half of the month, the upstream three materials of ABS saw a simultaneous increase, with the acrylonitrile market continuing to rise. The prices of raw materials propylene and liquid ammonia have risen, and the cost continues to provide strong support for acrylonitrile; The load of the acrylonitrile unit has decreased narrowly, the supply side has declined, and the main enterprises have actively increased prices, forming supplier support for acrylonitrile; The overall downstream consumption situation is mainly based on demand, and it is expected that the acrylonitrile market will fluctuate mainly in the high range in the future.
In the first half of April, the domestic butadiene market saw a high rise. The prices of foreign and domestic production enterprises remain strong, with some bidding sources trading at a premium to support spot prices. The Shenghong Refining and Chemical Plant has not yet resumed work, while the Satellite Chemical Lianyungang Plant is undergoing maintenance. Domestic production is fluctuating downwards, and the supply of butadiene is affected by favorable factors. The consumption of downstream major industries is average, and it is expected that the future market of butadiene may return to consolidation.
The styrene market has been equally positive for half a month. Driven by six consecutive increases in international oil prices in the first week of April, the cost of styrene is strongly supported. With the smooth digestion of port inventory and the gradual recovery of terminal demand, the styrene market continues to rise. The current port arrival news is still relatively low, but spot prices have risen to a small peak in the range, and downstream delivery willingness has decreased, which may affect the future increase in styrene.
In terms of demand: In the first half of April, the main terminal demand for ABS remained stable, and the overall factory load remained stable with minor fluctuations. The stocking operation was mainly focused on buying in demand. Considering the high rise in ABS prices, buyers are gradually showing resistance towards high-end sources of goods. Recently, traders have been reporting high prices and trading on the exchange has been average. The demand side has provided mediocre support to the market.
In the first half of April, the domestic ABS prices rose at a high level. From a fundamental perspective, the upstream three materials of ABS are expected to maintain a high level of support in the future market, with strong expectations for the cost side support level of ABS. The ABS polymerization plant is still operating at a relatively low level, with supply tending to be tight. Due to the high price range of ABS, it has affected the entry of some buyers. The current demand side has a strong demand for stock preparation, and the assistance to spot goods is gradual. Technically speaking, the probability of the 7-day line crossing the 30 day line in the short term is equivalent, and the Commodity Market Analysis System of SunSirs indicates that the likelihood of ABS rising and falling in the future is similar. Overall, it is expected that the ABS market will remain strong in the short term.
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