In early September, the domestic ABS market saw a significant increase, with spot prices increasing. According to the Commodity Market Analysis System of SunSirs, as of September 12th, the average price of ABS sample products was 11,625 RMB/ton, a +7.14% increase or decrease compared to the average price level at the beginning of the month.
In terms of supply: The ABS industry has recently experienced a high load, with a total operating rate of around 92%, which is almost unchanged compared to the previous period. The on-site supply of goods is generally abundant. The inventory position has significantly decreased, with around 160,000 tons as of the end of last week. The supply side has increased its support for the spot market.
In terms of raw materials, the overall performance of ABS upstream three materials was strong in early September. The acrylonitrile market remained stable after rising. The narrow consolidation of propylene prices still provides cost support for acrylonitrile; Downstream construction started slightly lower; The operation of the acrylonitrile unit has been basically stable, and the price of acrylonitrile has remained stable after rising.
In early September, the price of butadiene rose again. Encouraged by news from the downstream synthetic rubber market, merchants have shown a high sentiment in their offers, coupled with the continuous increase in Sinopec's supply prices, leading to a rapid upward trend in the domestic butadiene market. At present, the spot resources in the butadiene market are relatively abundant, and some high priced transactions are not smooth, suppressing the market's upward trend.
After the recent rise in the styrene market, it has been sorted out. The reason for the early rise is that Lianyungang Petrochemical, Dongming Petrochemical, and Shandong Lihuayi styrene plants have undergone maintenance, resulting in low styrene inventory and a rising market. Recently, international oil prices have risen, and cost support has maintained a good level, while the styrene market has also risen. The market has risen to a high level, which has affected downstream willingness to receive goods, causing styrene to stagnate. However, the industry fundamentals are solid, and the mindset of the industry is biased. It is expected that the styrene spot market will continue to rise slightly in the short term.
In terms of demand: Currently, downstream factories, including the main terminal appliance industry, have shown a significant increase in stocking enthusiasm. Under the traditional demand peak season market, coupled with macroeconomic improvement, buyers have a certain upward mentality. After the price increase of ABS, the acceptance level of manufacturers has slightly decreased, and the current procurement operation is slightly cautious. The overall trading trend remains hot.
In early September, the upstream three materials of ABS strengthened, providing strong support for the cost side of ABS. Petrochemical plants have started construction at a high level, with smooth shipments and significant market inventory digestion. The demand side support has strengthened, and trading has fully entered the traditional peak season level. However, the increase in spot prices may affect the willingness of terminals to receive goods, and it is expected that the ABS market may continue to operate at a high level in the short term.
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