In the first half of May, the domestic ABS market fell at a high level, and the spot prices of most brands fell. According to the commodity market analysis system of the business club, as of May 14, the average price of ABS sample products was 12,375 RMB/ton, up or down -0.80% from the price level on May 1.

Supply level: at the beginning of this month, the load of the domestic ABS industry undertook the low-level pattern in the early stage. After four months of upward channel, ABS prices rose to a high level, and the profitability of polymerization enterprises improved. In the first half of May, the average operating rate of domestic ABS enterprises increased by nearly 10%, to more than 62%. The output expanded synchronously, and the on-site supply of goods increased accordingly. In addition, the future market still has improved expectations, and the supply side's support for ABS spot is gradually weakened.

Cost factor: in the past half a month, the trend of ABS upstream three materials has generally turned down. Although acrylonitrile has the advantage of rising raw material prices, the centralized resumption of maintenance devices has an overall negative impact on the acrylonitrile market. The current spot price fluctuated and fell, and it is comprehensively expected that the acrylonitrile market will continue to be weak.

Recently, the domestic butadiene market has declined steadily. The downstream just needs to follow up after the holiday, and the pressure on the supplier is not obvious. However, the price of the external offer weakened, the news of low price transactions stimulated the domestic market, the price of the buyer's inquiry intention was low, and the mentality of the merchants gradually went empty. Market supply and demand are in a stalemate, and butadiene market is expected to be weak.

Since May, the styrene market has continued to decline. International oil prices fluctuated and the cost support was poor. Spot demand is dominated by rigid demand, while the price of styrene was relatively high before, and the resistance to high-end offer was revealed in the downstream. It is expected that styrene will fluctuate and fall in the future.

In terms of demand, the demand of ABS' main terminals has been greatly stable and slightly decreased, the overall load of downstream plants has been generally stable, and the goods preparation operation just needs to be purchased. Traders have flexible orders, the low-end offers in the market have increased, and the supply circulation speed has decreased. The market momentum weakened, and the demand side's support for the market weakened.

In the first half of May, domestic ABS prices fluctuated and fell. From a fundamental point of view, the center of gravity of ABS' upstream three materials fell, weakening the support for ABS' cost side. The start-up of ABS polymerization plant increased significantly, and the supply pressure gradually increased. The logic of rigid demand at the demand side remains unchanged, and the assistance to spot goods is mediocre. In conclusion, the ABS market is expected to be weak and downward in the short term.

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