In early June, the domestic ABS market remained stable with some decline, and the spot prices of most grades showed narrow fluctuations. According to the Commodity Market Analysis System of SunSirs, as of June 9th, the average price of ABS sample products was 10,562.50 RMB/ton, with a price level increase or decrease of -0.59% compared to early June.

Supply level: In early June, the load of the domestic ABS industry remained generally stable, with the overall load level rising narrowly from 61% at the beginning of the month to the current 64%. The average weekly output is close to 120,000 tons, and the inventory level of aggregation enterprises has significantly increased, with sufficient supply on site. At the same time, the recent release of new equipment capacity by two companies has had a suppressive impact on the supply side support of the industry, and the long-term loose supply pattern of the ABS market remains unchanged. Overall, the supply side has poor support for ABS spot prices.

Cost factor: In early June, the trend of ABS upstream three materials was relatively soft, providing average support for ABS cost side. In terms of acrylonitrile, the capacity utilization rate of major downstream industries in China has not changed much, and the overall market supply is abundant, but there is a shortage of purchasing gas. The planned production of facilities such as Zhenhai Refining and Chemical has suppressed market sentiment. There is a stage demand in some parts of southern China, which to some extent delays the market downturn.

In the early stage, there were unplanned maintenance of some domestic butadiene units, coupled with tight port supply, which led to tight supply in the butadiene market and strengthened the atmosphere of the spot market. After the price rose to a high level at the end of May, the trading atmosphere in the market began to fade. Entering June, downstream demand for synthetic rubber was weak in the latter half of the year, and port sources in East China accumulated, resulting in continued loose supply and weak consolidation of butadiene prices.

Recently, the domestic price of styrene has mainly declined. In terms of cost, crude oil fluctuates within the range, pure benzene is weakly consolidated, and the raw material side lacks support for styrene. In terms of supply and demand, the recent profit of styrene is still acceptable, and some units have plans to restart in advance. The downstream demand side remains stable with limited increment. Overall, the supply and demand side is expected to weaken. Under the bearish fundamentals, it is expected that the styrene market will operate weakly in the short term.

On the demand side: As we enter June, the load of downstream ABS factories in the ABS terminal has generally flattened, and the purchasing logic tends to focus on buying at the bottom and supplementing orders for urgent needs, resulting in a lack of new orders and slow flow of goods. The current market is gradually entering the traditional off-season, with reduced liquidity of goods sources and high inventory levels, resulting in continued loose supply and ample room for on-site turnover. Overall, the demand side showed weak support for the ABS market in June.

In early June, the domestic ABS market was consolidating and weak. The prices of upstream three materials are weak, the production load of ABS polymerization plants has slightly increased, and the comprehensive support on the cost and demand sides has weakened. Business analysts believe that the industry's strong supply and weak demand pattern has dragged down spot prices for a long time, coupled with the off-season of consumption, and industry players have returned to a cautious attitude. Under the dual pressure of cost and demand, it is expected that the ABS market will continue to consolidate weakly in the short term.

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