SunSirs: ABS Price Decreased in February (Feb.1-March.2)

The domestic ABS market in February weakened, and the market spot prices reduced. As of Monday, March 2, the mainstream offer price of gm-class ABS was around 12550.00 RMB /ton, down 7.04% from the average price level at the beginning of February.

Industrial Chain: Upstream of ABS, styrene market is still depressed in February. Although there is a narrow rebound in the latter half of the month, the trading changes are limited, and the overall weakness does not improve much. Due to the impact of domestic health incidents, different traffic controls have been implemented in different places. Although vehicle transportation capacity has been restored recently, downstream demand is not high. Under the situation that buyer wait-and-see phenomenon exists mostly, businessman stock accumulates formation pressure gradually. In addition to the recent cost support is weak, many companies choose to give up profit to complete the deal. Styrene recent market by the cost of insufficient support and weak demand double pressure will remain in the short term to lower the main market. 

The whole of this month acrylonitrile related products spot market trend is weak and weak prices on the message surface run. Downstream resumption of work is slow, and some acrylonitrile producers have announced plans to reduce production. Acrylonitrile producers say that transportation barriers remain high. Operators are confused, and downstream factories just need a small amount of goods. Market participants need to be further expanded. Acrylonitrile market is expected to be difficult to pick up in the near term. 

In February, the domestic butadiene market has a large decline, continuing weak situation. In addition, Zhejiang petrochemical and Hengli have some products for export. The increase of spot supply in the market is obvious. But the flow and downstream latex factory began to resume work has been near the end of the month, and the resumption of raw material inventory more abundant. After the festival, the good-preparation enthusiasm is poor, and the market is short of new orders to follow up. 

Short - term outer and tank spot supply was abundant while south and north market did not see a significant price gap to stimulate the flow of goods. The market supply side is still under pressure, downstream inquiries slightly cautious, and market bearish atmosphere filled. It is said that the market close to the low point in five years. The northern part of the high price offer lack of solid support. 

Market Forecasting: SunSirs analysts believe that in February ABS market prices fell and the recent brand spot prices offer gradually reduced. As for cost side, 3 raw materials’ this month trend is not ideal, giving poor support for the cost surface. Spot supply is more adequate but logistics transport was blocked. The market is likely to maintain a destocking policy in the near term, but a slow return to work downstream is holding back demand and the market climate is subdued with light trading. Domestic ABS prices are expected to continue to weaken in the near future.

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