In early July, the domestic ABS market was positive, with spot prices rising across the board. According to the Commodity Market Analysis System of SunSirs, as of July 10th, the average price of ABS sample products was 10,700 RMB/ton, a +1.66% increase or decrease from the average price level at the beginning of the month.

In terms of supply: Recently, the load in the ABS industry has shown a trend of large stability and small fluctuations. In the early stage, there were more enterprise maintenance and independent load reduction, which partially alleviated the high operating rate. Recently, trading and investment have rebounded, and construction has resumed. The current industry operating rate is about 82%. At the beginning of the month, enterprises mainly delivered contracts, but there was a decrease in on-site spot goods, and inventory was digested. The recent supply side support for the spot market is still acceptable.

In terms of raw materials: In early July, the overall performance of ABS upstream three materials was decent. Among them, the market for raw material acrylonitrile has risen, while the price of propylene on the cost side has remained strong. In addition, acrylonitrile enterprises have reduced their burden independently and had unplanned shutdowns, which has boosted the supply side and cost of acrylonitrile, resulting in a slight increase in prices.

Last week, the price of butadiene in China increased. Major production enterprises such as Sinopec have raised their factory quotations, which has boosted the mentality of merchants in offering, but downstream companies are resistant to high prices. The transaction of some offshore cargo in South Korea and Southeast Asia is still acceptable, and the price is still lower than the domestic spot price, so it is temporarily difficult to bring a significant boost to the domestic market.

The market price of styrene rebounded slightly in early July. The main reason is that the previous supply relaxation factors have not been fulfilled, and the production of new equipment has been delayed. In addition, the domestic policy foundation has supported styrene. Downstream demand is still mainly in demand, but there are still maintenance news in the future, which may continue to strengthen.

In terms of demand: Currently, downstream factories, including the main terminal home appliance industry, are generally operating at the beginning of the month, with increasing enthusiasm. Due to factors such as season and power restrictions, the operating rate is still at a low level. The manufacturer has a cautious mindset, but there has been an increase in empty orders on the market and overall demand has improved

Recently, there has been a simultaneous increase in the upstream three materials of ABS, which provides reasonable support for the cost side of ABS. The construction of petrochemical plants has stabilized compared to the beginning of the month, and some market inventory has been digested. The demand side support has rebounded, and the overall weak and rigid demand pattern has been maintained. It is expected that the ABS market may continue this strong trend.

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