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SunSirs: Rubber, Phased Supply is Slightly Tight And Price of ABS Rose Slightly in December

January 09 2020 10:21:33     SunSirs (Daisy)

1. Price Trend

According to the data from SunSirs, the ABS market fluctuated in December. And the spot price in the domestic market picked up. Up to December 31, the mainstream offer price of general-purpose ABS was around 13,000.00 RMB / ton, a 3.45% increase from the beginning of the month.

2. Market Analysis

Industrial chain: In various upstream aspects of ABS, the price of styrene fell in a narrow range this month. By the end of December, there was a concentration of Middle Eastern cargoes in the port, and East China's styrene port inventory was high. The port pick-up rate fell slower than expected, bringing replenishment to the styrene supply on the market.

It is expected that there will still be more arrivals of styrene by mid-January in January, and port inventories are expected to continue to rise. And as the Spring Festival is approaching, the enthusiasm of styrene downstream to take goods may increase, and the port pick-up speed is expected to decrease.

Pure benzene is supported by the outer disk. It is less likely that prices will fall sharply in the short term. Although certain support is provided for styrene, high-priced goods in the market are not well received. Overall, styrene prices were weakly sideways in the recent week.

The spot market for acrylonitrile-related products this month was relatively weak. There was news earlier in the month that Anqing Petrochemical ’s 210,000t / a acrylonitrile unit, which was scheduled to restart in mid-December, was postponed until the end of the month. There was a periodic gap in the supply of raw materials to its contract customers. Meanwhile, there was a period of speculative upsurge in the market. Traders reported a temporary rise, but the supply side tended to be balanced due to the arrival of imported goods in Hong Kong. Traders give up some of profit with lower opening price. Quotations returned to caution.

In December, the butadiene market declined weakly. At the beginning of the month, there is much news such as the U.S. TPC plant accident, the suspension of export by Northeast manufacturers, the short-term shutdown of Shenhua Ningmei and Nanjing Chengzhi plant. That made the market experience a short-term upsurge, but downstream follow-up was limited.

With the resumption of export by Northeast China's supply in mid-early December, the market continued to weaken. Later in the month, the price of goods in Northeast China was relatively low, and the downstream part just needed to follow up one after another. The market situation showed signs of stopping and stabilizing.

However, at the end of the month, the Zhejiang Petrochemical Plant successfully commissioned. And it was reported that Dalian Hengli Plant also had a commissioning trial in January. The medium- and long-term supply of butadiene will increase by a large margin, affecting some businesses' expectations of being short. In the short term, the domestic butadiene market will continue to explore slightly. It is recommended to pay attention to market supply and demand and internal and external disk news guidelines;

3. Market Forecasting

SunSirs analysts believe that in December the market situation of ABS fluctuated and rose. And the spot prices of various brands rebounded. On the cost side, the upstream materials are expected to fluctuate this month, with general support for costs. Spot supply has continued to be tight until the end of the month. And there has been some improvement in downstream factory inquiry. Purchasing has been carried out step by step.

With the enrichment of the spot on the market, the merchants' mentality has begun to weaken, and shipments are mainly on the market. It is expected that the domestic ABS will be dominated by the overall market in the near future, and it is recommended to pay close attention to the trend of cost.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

 

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