SunSirs: Banlanced Market, China ABS Market Remained Strong at a High Level at the End of April

Recently, the domestic ABS market has remained strong at a high level, with some brands experiencing an increase in spot prices. According to the Commodity Market Analysis System of SunSirs, as of April 26th, the average price of ABS sample products was 12,475 RMB/ton, a +0.20% increase or decrease from the price level on April 19th.

Supply level: Last week, the domestic ABS industry took on a low load pattern, with an average weekly operating rate of around 55%. Last week, Shandong Haijiang and Lihuayi both experienced varying degrees of load reduction, with a total weekly production of around 87,500 tons and a reduction in on-site supply of goods. The supply side maintains strong support for ABS spot goods.

Cost factor: Recently, the trend of ABS upstream three materials has maintained a high pattern, with acrylonitrile market still showing an upward trend. Last week, the load of the acrylonitrile unit remained low, and the news of resuming work in the future is uncertain. The supply side is declining, providing supplier support for acrylonitrile, and the main enterprises are actively raising prices; Downstream, there is an increase in pre holiday stocking and consumption, and both supply and demand are favorable. It is expected that the acrylonitrile market will continue to operate strongly in the future.

Last week, the domestic butadiene market was sorted and operated. As the holiday approaches, the demand for stocking up drives up the premium transaction of bidding sources, providing support for the demand side. However, the external market has fallen, coupled with weak transactions in some areas of southern China, causing a long short dilemma in the butadiene market. It is expected that the future market will continue to consolidate and operate.

The styrene market rose first and then fell this week. Last week, the supply of styrene narrowed, driving the market for the first half of the week. However, with the arrival of some ports and the decline in crude oil, the bullish mentality of operators has weakened. It is expected that there is still a possibility of downward adjustment in the future for styrene.

In terms of demand: Recently, the main terminal demand for ABS has remained stable and slightly decreased, and the overall load of factories has remained generally stable. The stocking operation is mainly focused on buying in demand. There are not many low-end goods in the current market, and traders are actively raising prices. Due to the high price of ABS, the pre holiday stocking situation is not significant. On exchange trading is average, and the demand side provides average market support.

The current domestic ABS prices remain high. From a fundamental perspective, the upstream three materials of ABS are expected to rise and consolidate, with strong support for the cost side of ABS. The construction of ABS polymerization plant is expected to remain at a low level, and supply tends to be tight. The current demand side just needs to enter the market, and the support for spot goods is gradual. In summary, it is expected that the ABS market will continue to remain strong at high levels in the short term.

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