SunSirs: Supply is Abundant, Consumption is Low, China ABS Market is Weak in August

https://www.chemnet.com   Sep 02,2022 SunSirs

　　According to the data of SunSirs, the domestic ABS market continued to be weak in August, and the spot prices of various brands decreased. As of August 31, the average price of general-purpose ABS mainstream offers was about 11,700 RMB/ ton, up or down by -4.49% compared with the price level at the beginning of the month.

　　Market analysis:

　　Industrial chain: in terms of raw material styrene, the market price of styrene fell first and then rose in August. The spot price of styrene continued to decline in the first half of the month. International crude oil futures fell by 3%, pure benzene supply increased, weak operation, poor cost support, styrene unit capacity utilization rate continued to rise, port inventory also increased for nearly a month, while the downstream just needs to purchase, styrene spot market was poor, and the styrene market fell mainly. The spot price of styrene continued to rise in the second half of the month. The international crude oil futures rose sharply, the pure benzene market was shaken and consolidated, and the cost support was good. The downstream operating rate increased significantly, and the demand was improved compared with the previous period. The styrene went to the warehouse smoothly, and the spot market rose. At present, the supply of styrene market is low, and it is expected that the short-term styrene market will mainly rise.

　　In August, the acrylonitrile market continued to be weak and recovered slightly in the latter half of the year. The supply side of the domestic acrylonitrile industry has been in a loose state for a long time. The profit situation of enterprises is poor. The industry has taken the initiative to reduce the negative pressure, and the supply pressure has been partially diverted. The improvement of downstream demand is not obvious, and the start-up of terminal enterprises is low. After the acrylonitrile price fell to the low level this month, some follow-up orders boosted the spot price. It is expected that the acrylonitrile market will recover in the short term.In August, the decline of domestic butadiene market slowed down. At the end of the month, the quotations of major manufacturers increased, and the market atmosphere warmed up. However, the overall situation was still declining. The main reason is still the contradiction between supply and demand. The supply is on the high side, while the downstream demand is relatively low and the external market is slightly boosted. It is expected that the short-term domestic butadiene market will be dominated by sluggish consolidation.In August, the upstream three materials of ABS cost side showed a general trend, and the support of ABS cost side was not strong. On the macro level, the chemical industry chain continued to weaken under the influence of international crude oil fluctuations, and the rise in oil prices at the end of the month supported the strengthening. In terms of industrial load, the expected increase in the start-up of some ABS production lines in the month was realized, while the supply in the whole month was abundant, and the pressure on the market from the supply side was not reduced. The demand was masked. The downstream of the industry was in the off-season market in August. The demand of the main terminal household appliances and other industries was lagging behind, and the impact of high temperature and power limitation was superimposed. The consumption in the field continued to be weak. The merchants reduce the price and take the order, and the offer follows the market. Terminal enterprises buy at low prices and have obvious resistance to high-priced goods.

　　Market forecast:

　　The spot market of ABS continues to fall in August, and the overall trend of the three materials in the upstream is general, which does not support the cost side of ABS. Domestic spot supply is abundant, and demand follow-up is poor. At the end of the month, the goods are taken to maintain production, and it is expected that the spot market of ABS in China will be maintained in the short term.

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