SunSirs: Passive Demand, China ABS Market was Poor at the beginning of August

According to the bulk list data of SunSirs, the domestic ABS market weakened in the first week of August, and the spot prices of some brands decreased. As of August 6, the average price of the mainstream offer of general-purpose ABS was about 17,700 RMB/ ton, a decrease of 0.56% compared with the average price at the beginning of the month and a year-on-year increase of 38.82%.

In terms of raw material styrene, the domestic spot price has fallen greatly recently, and it is expected that styrene may fall more or rise less in the near future. In terms of upstream butadiene, due to the overall increase in the butadiene market in the early stage, the high domestic spot price callback in the first week of August is expected to continue the weak trend of butadiene market.

Most of the upstream market weakened, and the cost side support of ABS was weakened. In terms of supply, the low resumption of work last month still increased the on-site supply, and the inventory of finished products still showed an upward trend recently. In addition, the market demand follow-up is insufficient. Although the profitability of the industrial chain tends to be concentrated in ABS, the cost pressure exists at the same time. With the increase of shipment resistance, the spot price fell locally.

SunSirs analysts believe that the spot market of ABS weakened in early August, the upstream trend was poor, and the support for ABS cost was weakened. The supply side support is gradually weakened due to the overall high load of the industry. At present, the demand of terminal enterprises is general. Under the stalemate of on-site offer, local prices have fallen secretly, and the mentality of operators has changed to cautious wait-and-see. The actual trading has decreased, and it is expected that the recent ABS spot market in China may be deadlocked.

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