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SunSirs: ABS Got Weaker Under Multiple Setbacks (March.16-26)

March 27 2020 09:10:29     SunSirs (Daisy)

In late March, domestic ABS market continued the previous weak trend, and the market spot price went down. As of Thursday, on March 26, the main offer price of general grade ABS is around 11500.00 RMB/ton, down 5.35% from the average price level of the second weekend of march before.

Industrial Chain: Among the ABS upstream, the recent styrene market decline is large. In the first half of the month, affected by the oil and chemical industry bad news, domestic styrene prices fell. In the second half of the month, the weak trend of cost side has significantly dragged the styrene prices. 

At present, the market supply situation is good, and the social inventory is high. Downstream still just need to take goods, and business confidence is not enough to see a short market. The market is lack of strong support, and the market generally offers low prices. Styrene is expected to continue weak operation in the near future. 

In the first half of the month, acrylonitrile was also affected by the oil and chemical industry negative news. In addition to the recent increase in production capacity, the market was obviously affected by negative news. Downstream rate of return to work was less than before the festival, and they procure just need a small amount of goods. It can be seen that demand contraction in the short term is difficult to improve. At present, the market is short of a good boost, and the depressed attitude of the industry was influencing everyone. Acrylonitrile market is expected to be difficult to improve in the near future.

Recently, the domestic butadiene market continued the weak downward trend. The crude oil slump and other macro bad news led to the cautious mentality of domestic merchants. Meanwhile, as for demand side, downstream inquiries drag down the price pressure on the supply side. The overall market focus continues to decline. Short-term terminal demand has a negative impact on the whole industry chain. Although there is no obvious negative sign of the main downstream synthetic rubber, the narrowing of the price gap leads to poor expectation in the later period and the negative atmosphere of butadiene spot market. Some news said last week in east China spot export plan, but under the pressure of the economic environment, it is difficult to fundamentally ease the contradiction between spot supply and demand.

In addition to the not-free northeast goods turnover, it is expected that market will become weaker in the short term. Meanwhile, the decline of butadiene market is hard to stop recently. Therefore, it is recommended to focus on the news and spot trading guidelines. 

Market Forecast: SunSirs analysts think that in the second half of march, ABS market prices continue to fall, the spot decline of each brand extended. The cost side of the upstream three recent trends are not good, lacking the cost of support. ABS spot supply is more adequate, but downstream demand is weak. Market news outside was quite negative, and business confidence was hit and actively cut prices to ship. Domestic ABS prices are expected to continue to weaken in the near future.

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

 

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