SunSirs: Tight Supply, High Price of China ABS before National Holidays

According to SunSirs, entering the late September, China ABS market trend is strong, most of the spot prices in the market fluctuate and rise. As of September 25, the mainstream offer price of general-purpose ABS was about 14,950.00 RMB/ ton, which was 1.01% higher than the average price at the beginning of the month.

Recently, the prices of ABS upstream styrene have been fluctuating since the beginning of the month. Downstream demand has increased, supporting the price of styrene. However, styrene inventory is still at a historical high, the market is restricted. The market is expected to remain deadlocked in the short term.

In September, ABS upstream acrylonitrile market continued a strong trend, and the price is expected to stabilize temporarily in the near future.

The domestic market of butadiene has a strong performance recently. The price of butadiene is stable at the beginning of the month, and the market is obviously rising in the middle of the month, and still rising in the last ten days. It is expected that the domestic butadiene market will be adjusted mainly in the near future.

In late September, the domestic ABS market offer was stable as a whole, with a high level of consolidation. China Domestic ABS spot supply shortage situation has not improved, near the National Day holidays, downstream factories actively hoard goods, aggravating the shortage in the market. Overseas continued to be affected by public health events, crude oil and futures trend is not positive, has a certain suppression effect on ABS market, aggravate the market wait-and-see mentality. Businesses are temporarily stable, due to the replenishment before the National Day holidays, trading atmosphere has also warmed up.

Market F orecast:

SunSirs analysts believe that: the recent China ABS market high stable, cost side of the upstream of the three raw materials in the near future trend is good, cost support for ABS is OK. At present, ABS spot supply is still in short supply, and the downstream is cautious about the reduction of ABS supply, but stock preparation before national day makes the trading atmosphere warm. The merchant ships smoothly, the low price source is hard to find. It is expected that China domestic ABS price will run at a high level in the near future.

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