SunSirs: Price Arrangement after China ABS Price Rises in Mid May

According to the data of SunSirs, the overall trend of ABS market in the first half of May was positive, and all brands of products were consolidated after rising. As of May 18, the average price of general ABS mainstream offer was about 18,600 RMB/ ton, up 1.22% from the average price in early April and 61.04% from the same period last year.

In terms of raw materials, so far, the domestic Styrene Market in the first half of May has fluctuated upward driven by cost support and tight spot supply, and the spot remains strong. It is expected that styrene will still be strong in the short term.

In early May, the domestic butadiene market was mainly consolidated. In terms of price, the trading atmosphere of butadiene market in East China was cold and slightly weak. It is expected that there will be no obvious positive support in the domestic butadiene market in the short term, and the trend may be mainly consolidation.

In the first ten days of May, the ABS cost side market was generally strong, and the support for ABS cost side was strong. In the early stage, the situation of increasing supply in petrochemical enterprises due to high operating rate has been improved. In the recent period, the maintenance of production units is relatively concentrated, and the burden reduction of enterprises is good for the supply side. The previous accumulated reserves have to be gradually digested. The spot market rose with the trend. By the middle of the month, the ABS price was at a high level, the end-user's resistance was gradually rising, and the trading atmosphere began to shrink. In addition, the current demand is not large; ABS is hindered in the game between supply and demand.

SunSirs analysts believe that, in the first half of May, ABS spot market generally rose, the current price position reached a monthly high in the first ten days of consolidation, and recently the price has come down. The trend of raw materials is generally strong, and the support for ABS cost is acceptable. The downstream factories follow up passively, no hoarding operation, strong resistance to high price sources. SunSirs believes that the supply side will be given extra support in the industry overhaul season, and the domastic consumption is limited. It is expected that China ABS spot market may continue its high consolidation trend in the near future.

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