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SunSirs: Rubber, ABS Price Sideways As Before (January 13-17)

January 19 2020 11:16:42     SunSirs (Daisy)

The ABS market was stable in mid-January, and the domestic spot price rarely fluctuated. As of January 17, the prevailing offer price of general-purpose ABS was around 13,500.00 RMB / ton, and it had been running sideways for almost a week with no ups and downs.

Industrial chain: Upstream aspects of ABS, the price of styrene was stable this week, which was greatly affected by the fluctuations in the international crude oil trend last week. And the cost support of styrene weakened. Pure benzene is temporarily stable while ethylene has risen sharply, and production cost support still exists.

Downstream PS and EPS stabilized. Downstream companies remained cautious attitude in purchasing raw materials and continued to digest raw material inventories. As the pricing of upstream factories was lowered, downstream replenishment demand was still acceptable. The oil market fell slightly, the US dollar rose, and the external guidance on styrene was good. Domestic production enterprises stabilized, and followed the market to adjust the quotation operation. Participating merchants wait and see. The atmosphere is aggravated. And the downstream terminal is digesting under pressure, and the intention of receiving goods is weak. The bearish sentiment spread. The entire styrene market lacks strong support.

Spot Market: The spot market of acrylonitrile-related products lacked good news this week and was relatively weak. Recent tight spot supply supported the price of acrylonitrile. But with the restarting of some manufacturers, the supply gap of raw materials for their contract has decreased. And there was a downward trend in the market for purchasing activity. Traders are cautious in their offers, and more trades allow profits to open lower.

Butadiene: The domestic butadiene market has narrowed recently. For bullish news, the start of the synthetic rubber industry is still acceptable. The pre-holiday restocking has certain support for the market. Due to the weather, the outflow of Jiutai and Ningmei coal is limited.

For the bearish news, East China has relatively abundant stocks, limited follow-up on transactions, while there is cautious news on the North supply side. Recently, the weather affected the poor of goods flow in the north. And the spot performance of the Shandong market was slightly tighter. With the approach of the Spring Festival holiday, some downstream positions may be followed up. But the supply situation of Fushun and Northwest is unknown, and some merchants are cautious.

Market Forecasting
SunSirs analysts believe that in mid-January, the ABS market was stable and sideways, and most of the spot price quotes remained unchanged. On the cost side, the upstream materials are expected to fluctuate this month, with general support for costs.

The spot supply is more abundant than last month. The spot supply is enriched, but the downstream factory purchases are not enough to follow up, and the merchants' mentality has begun to weaken.

It is expected that the domestic ABS will be mainly sideways in the near future, and it is recommended to pay close attention to the trend of cost side.

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

 

 

 

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