Since early August, the overall ABS market has continued to trend weakly, with some grades experiencing a decline in spot prices. According to the Commodity Market Analysis System of SunSirs, as of August 12th, the average price of ABS sample products was 10,250 RMB/ton, with a price level increase or decrease of -0.61% compared to early August.

Supply level: Since August, the load of the domestic ABS industry has increased. At the beginning of the month, Dalian Hengli equipment restarted, and the pipeline blowing task of Tianjin Dagu equipment ended. The overall load level of the industry has increased from 67% at the beginning of the month to over 71%, and the supply side continues to relax. The weekly average production is close to 140,000 tons, and the inventory position of aggregation enterprises is at a high level of 220,000 tons, with ample supply maintained on site. Overall, the long-term loose supply pattern in the ABS market remains unchanged, and the high inventory levels in the industry are temporarily controllable. Overall, the supply side has weak support for ABS spot prices.

Cost factor: In early August, the overall narrow range of ABS upstream three materials market increased, which limited the support for ABS cost side. Within the interval, the acrylonitrile production capacity of East China Zhejiang Petrochemical and Sinochem Quanzhou plants has decreased, leading to a decrease in industry capacity utilization and an upward trend in market quotations. And there will still be maintenance by enterprises such as Fushun Petrochemical in the future, and the supply will gradually decrease to alleviate excess pressure. At the same time, downstream major factories have stable contract demand, and short-term main manufacturers are expected to continue to raise prices. However, considering that the overall supply is still abundant and spot buying is still cautious, there may still be resistance to pushing up prices.

The domestic butadiene market fluctuated slightly in early August, with a slight increase. On the supply side of the industry, there has been a slight decline with a slight increase in losses and a restart. The equipment in Shandong region has not been exported yet, and the overall supply is tight. At the beginning of the month, the demand side entered the market to replenish inventory at a low price, and the overall demand is now returning to rigid demand. The future market may mainly operate in a stable to weak manner, and the overall fluctuation range may be limited.

Recently, styrene has been mainly fluctuating. The overall supply of pure benzene raw materials has slightly contracted, with a reduction in both petroleum benzene and hydrogenated benzene. However, the market supply has been loose for a long time, with abundant sources of goods and limited price increases. On the other hand, the operating rate of styrene remains stable with small fluctuations, and there will be both market restart and production in the future. Insufficient guidance on downstream demand is expected to put pressure on the styrene market in the short term.

On the demand side: In the medium to long term, the downstream factories of ABS have had average loads. The current market is in the traditional off-season range, and terminal enterprises maintain a strong demand for supplementary orders. Since August, the production of electrical casing industry has decreased, and consumption has further shrunk. The geopolitical situation in Eastern Europe has caused concerns in some markets, and the external market has added a more cautious atmosphere, resulting in a slow flow of goods. Domestic inventory levels remain high and sideways, with continued loose supply and ample room for on-site turnover. Overall, there has been no improvement in the demand side's support for the ABS market.

In early August, the domestic ABS market was weak and the consolidation trend continued. Upstream three materials, two rising and one fluctuating, ABS polymerization plant production load increased, and the demand side is at a low season level. Analysts from SunSirs believe that the long-term drag on spot prices of ABS due to supply and demand contradictions makes it difficult for the market momentum to improve. It is expected that the ABS market will maintain a consolidation pattern in the short term.

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