Since December, the domestic ABS market has continued to weaken and trend, with most grades of spot prices being lowered. According to the Commodity Market Analysis System of SunSirs, as of December 10th, the average price of ABS sample products was 8,375.00 RMB/ton, with a price level increase or decrease of -2.36% compared to the end of November.

Supply level: Since early December, the operating rate of the domestic ABS industry has increased. Within the interval, Jilin Petrochemical's load has increased, and some equipment maintenance tasks of Zhejiang Petrochemical have ended. The overall operating level of the industry is around 70%, and the weekly average production is over 145,000 tons. The on-site supply remains abundant, and the inventory position of the aggregation enterprise is close to 260,000 tons, holding firm at a high level. Overall, the long-term loose supply pattern in the ABS market remains unchanged, and the supply side's support for ABS spot prices continues to be weak.

Cost factor: In early December, the upstream three materials market of ABS experienced more declines than gains, which had a negative impact on the cost side of ABS. The capacity utilization rate of the acrylonitrile industry remains above 80%, with an increase in excess inventory and market volatility. However, downstream users have abundant inventory, average purchasing enthusiasm, and poor trading in the spot market. There are still expectations of a short-term downturn, but cost pressure continues to exist, which still restricts the downward space of the market.

The market situation of butadiene in early December was similar to that of acrylonitrile, with abundant supply but weak downstream demand. Under the dual negative impact, the overall volatility of the butadiene market was weak. At the same time, there has been no significant improvement in the downstream synthetic rubber market, and there is a lack of positive support within the market. It is expected that the butadiene market will continue to have a weak and volatile trend in the future, with a focus on inventory digestion.

At the beginning of this month, the styrene market rose. Although the raw material pure benzene market is constrained by demand and hindered from rising. However, recently there have been many unplanned shutdowns of styrene plants, and the supply side is gradually strengthening. At the same time, downstream profits have recovered and production has rebounded, with demand steadily following suit. The supply and demand of styrene in the future may continue to maintain a tight balance pattern, and prices may mainly fluctuate within a range.

On the demand side: In the early stage, the consumption of ABS's main downstream electrical appliance shell industry weakened, resulting in unsatisfactory profitability for end enterprises and no increase in future production. There is no significant increase in downstream demand for ABS, and the overall stocking logic of buyers still maintains a strong demand for replenishment, resulting in slow supply flow. The inventory position of merchants is also at a high level of stalemate, and under the increasing pressure of de stocking in the field, enterprises and merchants continue to offer discounts and take orders. According to customs data, the export market has generally remained flat, with limited support for industry consumption. The domestic and foreign markets maintain a cautious atmosphere, and the industry lacks momentum. Overall, there has been no improvement in the demand side's support for the ABS market.

The domestic ABS market maintained a downward trend in early December. The production load of the aggregation plant has slightly increased, while consumer demand has remained low and flat. SunSirs analysts believe that the long-term supply-demand imbalance of ABS has plagued the market, dragging down spot prices. At the same time, the upstream three material market has risen and fallen, and the mentality of the industry is negative, giving up profits and taking orders. In the short term, there is a lack of positive guidance, and it is expected that downward pressure on ABS will still exist.

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