SunSirs: High Price Goods are in Conflict, China ABS Fell Back in early December

According to the data from SunSirs, China domestic ABS market fell back at a high level in early December, and the spot prices of various brands decreased to varying degrees. As of December 4, the mainstream offer price of general-purpose ABS was about 18,500 RMB/ ton, with a weekly decrease of 3.91%.

ABS upstream, styrene in mid late November from up to down, the current domestic styrene price shock adjustment. It is expected that the recent styrene market will continue to sort out the market. The raw material propylene rose in November, followed by the acrylonitrile market, and the spot supply was in short supply. At the beginning of December, the spot trend still rose slightly. At present, the speculation mood of acrylonitrile spot price dropped and the rising trend was narrowed, but the fundamentals were already weak, and it is expected that acrylonitrile will stagnate in the near future. In December, the domestic butadiene market is weak, and it is expected that the butadiene market will continue to be weak in the short term.

In December, the domestic ABS market declined. Upstream three material prices are not strong, cost support weakened. Domestic ABS supply is generally not surplus. On the downstream side, the consumption of major domestic appliance enterprises and automobile industry is still stable, and the market demand has a certain foundation. However, with the long-term rise of ABS, the cost pressure of downstream factories is gradually increasing. At present, the lower reaches are more resistant to high price goods.

SunSirs analysts believe: China ABS market fell in early December; the price of each brand has a certain downward range. On the cost side, the upstream three materials are weak as a whole, which weakens the support on the cost side of ABS. At present, ABS spot supply is OK, but due to the large rise in the early stage, the downstream seriously conflicts with high price goods. At the end of this week, petrochemical plants and businesses began to reduce their profits about 700 RMB/ ton. It is expected that China domestic ABS price will continue the callback trend in the near future.

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