SunSirs: Poor Demand Leads to a Decline in China ABS Market

In the first half of October, the domestic ABS market trend declined, and spot prices of various brands were generally lowered. According to the Commodity Market Analysis System of SunSirs, as of October 16th, the average price of ABS sample products was 11,350 RMB/ton, a decrease of -5.42% compared to the average price level at the beginning of the month.

In terms of supply: In October, the ABS industry's load remained at a high level, with a current operating rate of around 87%, which has decreased compared to the end of September. The on-site supply of goods is generally abundant. The inventory position has significantly increased, and the supply side has poor support for the spot market.

In terms of raw materials: Since the end of the holiday, the overall performance of the three upstream materials of ABS has been mixed. Although the price of acrylonitrile raw material propylene has fallen, it is still high, and costs continue to support acrylonitrile. In addition, the construction of acrylonitrile units has slightly decreased, and the supply and demand side has slightly supported, resulting in a slight increase in acrylonitrile prices.

After the holiday, the domestic butadiene market weakened slightly due to the impact of crude oil fluctuations, and there were no obvious signs of supply shortages, indicating a slight stalemate in the market atmosphere. The external market price is firmly supported, and the main downstream synthetic rubber has good profits. There is some support in the demand side, and it is expected that the domestic butadiene market is expected to be stronger and consolidated.

Recently, the market price of styrene has declined. After the holiday, crude oil, raw materials, and main markets weakened, with average cost support. The production and sales profitability of styrene production enterprises is poor. Currently, downstream demand is mainly maintained, and the market is relatively cold. There is a shortage of spot transactions, and styrene inventory is high, leading to a decline in the market.

In terms of demand: In the first half of October, downstream factories of ABS, including the main terminal home appliance industry, showed low stocking enthusiasm. The preliminary inventory needs time to digest, and in addition, the acceptance level of manufacturers has been affected by the previous increase in ABS prices, causing demand to drag on the market.

In the first half of October, the upstream three materials of ABS were generally weak, providing poor cost support for ABS. The high starting point of petrochemical plants has slightly decreased, and social inventory has accumulated. Poor demand side consumption. It is expected that the ABS market may remain weak in the short term.

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