At the beginning of January, the domestic ABS market in China maintained consolidation, with spot prices of various grades stabilizing slightly. According to the Commodity Market Analysis System of SunSirs, as of January 7th, the average price of ABS sample products was 11,837.50 RMB/ton, which remained the same as the beginning of the month.
Supply level: In early January, the operating rate of the domestic ABS industry remained stable with a small increase, and the industry load level increased narrowly by about 2% to 74% compared to the end of last month. The equipment load of enterprises such as Zhejiang Petrochemical has increased, and production capacity is gradually returning. The weekly average production within the range is close to 130,000 tons, and the inventory level of aggregation enterprises is close to 170,000 tons, both of which have increased. The overall pattern of abundant supply of goods remains unchanged. Overall, the supply side provided average support for ABS spot prices in January.
Cost factor: Since January, the three upstream materials of ABS have shown mixed trends, with overall support for ABS costs being average. The domestic acrylonitrile market has maintained a sideways trend recently. In the early stage, the industry maintained low load operation, with low inventory levels and tight supply. But the news of Zhenhai Refining and Chemical's production has smoothed out the positive news on the supply side, and the overall market is adopting a wait-and-see attitude.
Recently, the butadiene market has continued to rise, and the overall available supply in the spot market is tight. Holders of goods have a strong mentality of supporting prices. Boosted by this news, market quotes generally rose. But as prices continue to rise, downstream high-level receiving capacity gradually declines. As the Spring Festival approaches, some pre holiday purchasing demand has been released downstream, driving an improvement in the atmosphere of the spot market.
At the beginning of January, the styrene market rebounded narrowly after a decline. With the restart of the equipment, the domestic industry's operating rate has rebounded in the early stage, and the tight supply situation has become more relaxed, resulting in a weakened market. Recently, there has been a rebound in upstream crude oil prices, while downstream demand has remained relatively stable. The market may enter a consolidation phase in the future.
In terms of demand, downstream purchasing power decreased in early January, and the demand for export of some front-end household appliances in the terminal sector was completely released. The overall load position of factories fell, and the willingness of terminal stocking decreased. Overall, the demand side provides average market support. However, the extension of the national subsidy policy for household appliances will stimulate the market, and terminal products may continue to receive policy support in the future. There is hope for enterprise inventory digestion, and market confidence is expected to rebound.
At the beginning of January, the domestic ABS market operated steadily. The performance of the upstream three materials is average, and the comprehensive support for ABS cost side is flat. The load of ABS polymerization plant has slightly rebounded, and the inventory of finished products has accumulated slightly. The demand on the demand side is relatively weak, but as the end of the lunar calendar approaches, the on-site demand is limited. Business analysts believe that the ABS market may enter a pre holiday period and consolidate weakly.
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