SunSirs: Industry Load Increased, China ABS Market Prices Fell

Recently, the domestic ABS market has rebounded after rising, and spot prices have fluctuated in both directions. According to the Commodity Market Analysis System of the SunSirs, as of July 21, the average price of ABS sample products was 10,675 RMB/ton, a+1.43% increase or decrease from the average price level at the beginning of the month.

On the supply side, the load in the ABS industry has been increasing recently. In the early stage, there were more enterprise maintenance and independent load reduction. The current operating rate has rebounded to a high of 86%, and the on-site supply of goods has increased. The increase in inventory was significant, with an overall increase of 117,000 tons. Recently, supply side support for spot prices has weakened.

In terms of raw materials, the overall performance of ABS upstream three materials was average last week. Among them, the market for raw material acrylonitrile has declined, while the price of cost end propylene has decreased. Due to independent load reduction and unplanned shutdowns in the early stage, acrylonitrile enterprises have some positive supply side effects, but demand is weak, and the wait-and-see sentiment among operators has intensified. The flow of goods on the market is not smooth, and prices have stagnated after falling.

Last week, domestic butadiene prices were sideways. The strong prices of external and domestic production enterprises have boosted the mentality of merchants in offering, while the downstream construction and profit situation are still good, and there is some support for demand in the face of the market. With the arrival of imported cargo at the port, port inventory has increased, and some early maintenance equipment has restarted, leading to an increase in domestic production. Supply side expectations have led to cautious downstream inquiries, and the increase in butadiene market prices has weakened.

Recently, the market price of styrene has risen. In the early stage, international oil prices drove the pure benzene market, with strong cost support, and the styrene market followed suit. Recently, the styrene port went to the warehouse smoothly, and there was export news. It is expected that the short-term styrene Spot market will mainly rise.

In terms of demand: Currently, downstream factories, including the main terminal home appliance industry, have basically completed their stock preparation operations at the beginning of the month, and their enthusiasm has declined. Due to factors such as season and power restrictions, the operating rate is still at a low level. The manufacturer has a cautious mindset and the overall demand needs improvement.

Recently, the three upstream materials of ABS have seen mixed ups and downs, providing average support for the cost side of ABS. The construction of petrochemical plants has increased compared to the previous period, and market inventory has also increased simultaneously. The demand side support has fallen, and the overall weak and rigid demand pattern has been maintained. It is expected that the ABS market may enter a consolidation market.

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