SunSirs: Limited Improvement in Supply, China ABS Market was Weak

In late November, the domestic ABS market continued to be weak, with spot prices of various brands consolidating and operating. According to the Commodity Market Analysis System of Shengyishe, as of November 27th, the average price of ABS sample products was 11,137.50 RMB/ton, with an increase or decrease of +0.11% compared to the average price level at the beginning of the month.

In terms of supply: Recently, the ABS industry has maintained a high load, with a domestic operating rate of around 75% as of the 27th, which is a narrow decrease compared to the previous period. The stable production of the enterprise, coupled with the previous production of the new equipment of Yinglishi Benling, has led to a steady increase in inventory at present. The on-site supply of goods is abundant, and the company's loss situation continues. The supply pressure is relatively high, and there is little improvement in the dragging effect of the supply side on the spot market.

In terms of raw materials: In late November, the three upstream ABS materials showed mixed fluctuations, with the acrylonitrile market showing an upward trend. The domestic production capacity loss is relatively large, and at the same time, some devices have delayed resumption of work, leading to a tightening of market supply and increased support from the supply side. However, downstream acceptance after the rise is poor, and it is expected that the increase in acrylonitrile may be limited.

The domestic butadiene market has recently recovered after a decline. In the early stage, there was equipment maintenance in the northern region, causing a contraction in the market's spot supply and a rebound in merchant quotations. Downstream products, including ABS, have shown weak market performance and weak demand, smoothing out favorable maintenance. It is expected that the domestic butadiene market will operate sideways.

In late November, the market price of styrene gradually declined. The cost support mainly comes from ethylene, and downstream demand is not strong. Although the inventory position is not high, the main ports have concentrated arrivals. The situation of empty space in the venue is complicated, and it is expected that styrene will operate in a volatile manner in the future.

In terms of demand: Downstream factories of ABS, including the main terminal home appliance industry, showed average stocking enthusiasm in late this month, with an overall focus on digesting existing inventory. The operation of enterprises tends to maintain production, making it difficult for demand to increase, and the impact on price trends is not significant.

In late November, the overall performance of the upstream three materials of ABS was mixed, and overall support for the cost side of ABS was average. The petrochemical plant has maintained its early stage of operation, and supply pressure continues. The demand side consumption is poor, and merchants are often bearish about the future market. It is expected that the ABS market will struggle to overcome the supply-demand contradiction in the short term and may maintain a weak consolidation trend.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.