In January, the domestic ABS market remained stable with some gains, and spot prices of some grades increased. According to the Commodity Market Analysis System of SunSirs, as of January 31st, the average price of ABS sample products was 11,875 RMB/ton, with a price level increase or decrease of  +0.32% compared to the beginning of the month.

Supply level: In January, the domestic ABS industry started with an initial increase followed by a decrease, and the industry load increased to 76% in the first half of the year. Subsequently, due to the decrease in load of the Tianjin Dagu plant, the level decreased by about 3% to 73% compared to the first half of the month. The average weekly production within the month is around 120,000 tons, and the inventory level of aggregation enterprises has slightly decreased to 160,000 tons. The overall pattern of abundant supply of goods remains unchanged, with good pre-sales of petrochemical plants before the holiday, and there will still be some inventory pressure in early February in the future. Overall, the recent supply side has provided average support for ABS spot prices.

Cost factor: Entering January, the trend of ABS upstream materials is relatively strong, and overall support for ABS cost side is still acceptable. The domestic acrylonitrile market remained volatile and rising. The industry has been operating at low load during the month, and it seems that it will take some time for supply to return. Additionally, the industry's inventory levels are low, and prices are running steadily. Downstream purchasing power has weakened before the holiday, but the overall market performance remains strong at a high level.

The butadiene market has also risen at a high level, and the available supply of goods in the spot market remains tight. Holders of goods have a strong mentality of raising prices. But with the continuous rise of spot prices in the early stage, the downstream high-level receiving ability gradually declines. At the same time, it is expected that the production capacity will increase in early February, and it is expected that butadiene may enter a consolidation market.

Styrene fluctuated in January, with an overall increase. It is common for styrene plants to return to production capacity within the month, while there is also a situation of accumulated cargo upon arrival at the port. However, the supply was tight in the early stage, and there was a tug of war between long and short positions in the market. At the same time, crude oil prices rose in the second half of the month, and styrene was boosted by the far upstream, resulting in a strong price trend.

In terms of demand, the export demand for some front-end household appliances in the terminal sector has been fully released before the January holiday, and downstream purchasing power has weakened during the Spring Festival period. The terminal factory is on vacation, and the overall load position has fallen. In the latter half of the year, some terminal enterprises were stimulated by the rise in ABS cost values and entered the market to purchase and replenish orders, with a bias towards pre holiday warehouse building. In addition, with the extension of the national subsidy policy for household appliances to stimulate the market, terminal products in the future may continue to receive policy support. Overall, the demand side has slightly improved its market support.

The domestic ABS market rose in January. The upstream three materials are operating relatively strongly, which provides sufficient comprehensive support for the cost side of ABS. The load variation of ABS polymerization plant is limited, and there is still pressure on the supply side. The demand side is mainly driven by essential needs, with some pre holiday warehouse construction projects entering the market. Business analysts believe that the ABS market in early February may continue to stabilize in the short term, with unemployed individuals returning to the market.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.