SunSirs: Upstream Three Materials Remain Strong, China ABS Market Remains Stable at a High Level

The domestic ABS market continues to have high prices, and spot prices of various brands remain strong. According to the Commodity Market Analysis System of SunSirs, as of March 29th, the average price of ABS sample products was 12,162.50 RMB/ton, with a price increase or decrease of +3.18% compared to the beginning of the month.

In terms of supply: Last week, the domestic ABS industry took on the pattern of load reduction and adjustment in the early stage. Recently, the maintenance of the PetroChina Jieyang plant has gradually been completed, and the industry plant load has rebounded to over 56%. The load on ABS aggregation enterprises is still relatively low, affecting the tight supply pattern in the market. The production and inventory levels of production enterprises are not high, and overall, the supply side's support for spot goods is still acceptable.

In terms of raw materials: Last week, the overall trend of ABS upstream three materials was mixed at high levels, with acrylonitrile market fluctuating and rising. The price of raw material propylene has decreased, while the price of liquid ammonia has significantly increased, which continues to support the cost of acrylonitrile; The supply of acrylonitrile units has slightly declined, and there are still some units with maintenance plans in the later stage, which provides some support for the acrylonitrile market. It is expected that the acrylonitrile market will continue to fluctuate and consolidate in the future.

Recently, the domestic butadiene market has been stagnant horizontally. The continued rise in external prices in the early stage has boosted market sentiment, but in recent times, most downstream industries have seen inverted profits, with the main downstream industries experiencing a gradual decline in operating load, and the demand side showing a slightly weak drag. At the end of the month, there was a mix of long and short positions for butadiene, and the overall performance of the market transaction center remained stagnant. It is expected that the market will enter a consolidation period in early April.

Last week, the market price of styrene fell. Recently, international oil prices have fallen, cost support has been poor, downstream demand has not improved, and styrene supply is relatively abundant, inventory decline is slow, market shipping intentions are strong, and quotations have declined. Under dual bearish conditions, it is expected that the styrene market will experience short-term volatility and decline.

In terms of demand: Recently, the main terminal demand for ABS has remained stable, and the overall factory load has remained stable with minor fluctuations. The stocking operation is mainly focused on buying in demand. In the early stage, the price of ABS increased, and buyers gradually became resistant to high-end sources of goods. Last week, approaching the end of the month, traders actively sold their goods, and some offers were loose. The demand side provided moderate support to the market.

Last week, the overall performance of the three upstream materials of ABS was mixed, maintaining support for the cost side of ABS. The construction of petrochemical plants is still at a low level, and the supply pressure is not significant. Due to the high level of ABS prices, some buyers have entered the market, and the demand side's support for spot goods has flattened. At the end of the month, traders experienced a price reduction and order taking operation. Currently, ABS is complementary in both long and short positions, and it is expected that the ABS market will remain strong at the beginning of next month due to the impact of low supply.

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