Since May, the domestic ABS market has continued to decline, with most spot prices of various grades decreasing. According to the Commodity Market Analysis System of SunSirs, as of May 12th, the average price of ABS sample products was 10,437.50 RMB/ton, with a price level increase or decrease of -2.68% compared to early May.

Supply level: In May, domestic ABS industry companies such as Yulong Petrochemical restarted, with an increase in operating rates. The overall load level has rebounded from 65% at the end of April to around 70% currently. The average weekly output is close to 130,000 tons, and the inventory level of aggregation enterprises is high, stable, and fluctuating. The on-site supply is still at a relatively abundant level. At the same time, in the second half of the month, two companies planned to launch new equipment production capacity. Except for Liaoning Jinfa, there are few maintenance arrangements in the industry in the short term, and the supply-demand contradiction pattern is profound. Overall, there has been no improvement in the supply side's support for ABS spot prices.

Cost factor: In early May, the trend of ABS upstream materials was mainly stagnant, and the support for ABS cost side was average. In terms of acrylonitrile, the local supply contraction in China before and after the May Day holiday has led to a temporary weak balance in the market, coupled with continued cost pressures. Suppliers are maintaining high prices, and the overall market is in a stalemate and consolidation. In the long run, considering the gradual release of new production capacity, but in the short term, the industry inventory is controllable and the overall situation is temporarily stable.

The domestic butadiene market has fluctuated within a range since May. Last month, the price of butadiene significantly declined in the middle of the month. At the end of the month, some downstream enterprises purchased on dips, and the market trading atmosphere slightly improved, leading to a rebound in the market. Under the influence of various news such as crude oil, tariffs, and consumption, the butadiene market is experiencing both long and short positions, with prices mainly consolidating.

After the May Day holiday, the domestic styrene market fluctuated within a certain range. Overall, the supply of raw material pure benzene is not smooth, and the price has been lowered. The maintenance of the styrene supply side has ended and entered the restart stage. The low port inventory has provided support for prices, while the demand side remains weak. Under the game of supply and demand, styrene has fluctuated. The weak demand and raw materials in the future are difficult to change, and it is expected that the styrene market will operate weakly in the short term.

Demand side: As we enter May, the load of downstream ABS factories in the ABS terminal has generally flattened, and the purchasing logic tends to lean towards buying at the bottom and supplementing orders for urgent needs. But there is still inventory that needs to be digested, resulting in sluggish new order trading. The confidence in the market is weak, the stocking atmosphere is cautious, and the flow of goods is slow. Overall, the demand side has poor support for the ABS market.

The domestic ABS market continued to decline in early May. The sorting and running of the upstream three material intervals provides average comprehensive support for the cost side of ABS. The production load of ABS polymerization plant has rebounded, and the high supply level has been relaxed. The weak consumption pattern on the demand side has not improved. Business analysts believe that ABS has fallen to near cost price, and the market has long had strong supply and weak demand. Coupled with the impact of international news such as equivalent tariffs, pessimistic expectations for the future are biased. The bullish trend within the market is hard to find, and there is still a possibility that the market may continue to decline in the short term.

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