Price trend

In February, the domestic ABS market weakened and the spot price fluctuated and fell. According to the data monitoring of SunSirs, as of February 28, the average price of ABS sample products was 11,833.33 RMB/ton, down by 2.20% from the average price level at the beginning of the month.

Analysis review

In terms of raw materials: the overall performance of ABS upstream three materials in February: two rose and one fell. The rise of acrylonitrile was concentrated in the first ten days. The market resisted the rising price, and the market fell in the middle and late of the month. At the same time, the price of raw materials fluctuated and the cost decreased slightly; At the end of the month, the price position of acrylonitrile was still higher than that at the beginning of the month. At the same time, the high starting point in the downstream had rigid support for acrylonitrile. It is expected that the acrylonitrile market will consolidate in a narrow range in the short term.

The market situation of butadiene in February was driven by the price increase of mainstream suppliers at the beginning of the month, and boosted by the increase of export volume in the middle of the month. The market atmosphere was strong. However, due to the limited growth of downstream synthetic rubber and the inconspicuous improvement of terminal demand, the supply and demand gamed, the growth in the second half of the month narrowed and the market stabilized. It is expected that the domestic butadiene market will be sorted out at a high level in the short term.

Shandong styrene market fluctuated and fell this month. The main guiding factor in the month was the trend of raw material pure benzene. Pure benzene fell at the beginning of the month due to the fluctuation of international crude oil price, and gradually rebounded after the market consolidation, with common support for styrene. In terms of supply, although the port inventory of styrene decreased rapidly in the month, the overall supply of styrene remained abundant. It is expected that the styrene market will continue to fluctuate downward in the short term.

On the supply side: the load of the ABS industry was high in February, and the overall operating rate was stable and slightly changed. At the end of the month, it was still at 96% and almost full, resulting in a continuous supply of goods in the site. ABS domestic inventory accumulated, and the inventory position rose from the previous period. The factories were forced to reduce the ex-factory price in order to remove the stock, and the supply side dragged the spot price.

Demand: Downstream factories, including the main terminal appliance industry, had a common enthusiasm for stock preparation this month. Most of the factories had pre-season inventory to be digested. The overall demand tended to be weak, and the shipment of goods in the market was not smooth.

Market outlook

In February, the trend of ABS upstream was mixed, and the support for ABS was general. The operating rate of the petrochemical plant was close to full operation all month, with abundant supply and accumulated inventory. The demand-side support was poor, the mentality of merchants was weak, and the operation was biased to gave up profits to sell goods. It is expected that the ABS market will continue to be weaker in the short term due to the impact of contradiction between supply and demand.

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