Price trend

In early January, the domestic ABS market was weak and the price was generally stable. According to the data monitoring of the business community, the average price on January 6 was 11750 yuan/ton, which was the same as the average price at the beginning of the month.

Cause analysis

In terms of raw materials: the recent overall performance of ABS upstream three materials is fair. Among them, acrylonitrile increased in a narrow range. This week, the cost support of acrylonitrile was temporarily stable, and there was no significant increase in downstream demand. In addition, the overall pressure to restart after the short stop of Lihuayi on the supply side remained. It is expected that the acrylonitrile market will be weak and consolidated in the later period.

Recently, the domestic butadiene market has risen by a narrow margin. This week, the supply is relatively stable. Some downstream replenishment needs follow up before the festival, which has boosted the spot market. During the week, the external market rose slightly, and the prices of domestic mainstream suppliers increased actively. At the same time, after the festival, some manufacturers in Shandong Province increased their prices significantly, which boosted the market

This week, the mainstream price of styrene in Shandong was corrected after rising. Pure benzene market fluctuated and cost support fluctuated. In the early stage, futures drove up, but the downstream operating rate was affected by public health events, and just needed procurement to maintain production. It is expected that the styrene market will continue to be weak in the short term.

In terms of supply: this week, the ABS industry has maintained a high level of load, the current plant commencement is stable, and the supply of goods on the site continues to be abundant. Due to the supply pressure of enterprises to a certain extent, the inventory position rises and the ex factory price is under pressure.

Demand: At present, downstream factories, including the main terminal household appliances industry, are preparing goods step by step, and the stock preparation before the festival is basically completed on the market. Recently, demand tends to be stable, and goods are normally shipped on the market. Buyers and merchants follow the market with stable performance.

Future market forecast

At the beginning of January, the trend of the three upstream materials of ABS was mixed, which generally supported the cost side of ABS. The petrochemical plant started at a high level and the supply was stable. Before the end of the demand period, the goods preparation support was average, the seller’s offer was firm, and the market was strong. With the good stock tide, it is expected that the ABS market will be weak in the short term.