In February, the consolidation of domestic ABS market was weak, and spot prices of most brands fell in a narrow range. According to the commodity market analysis system of the SunSirs, as of February 28, the average price of ABS sample products was 11,762.50 RMB/ton, up or down by - 0.95% from the beginning of the month.

Supply: In February, the operating rate of the domestic ABS industry had little change, and the load rate was reduced by 1% to 72% within the month. The weekly average output is close to 130,000 tons, the inventory position level of polymerization enterprises at the end of the month is close to 190,000 tons, showing an accumulation trend, and the overall supply pattern of abundant goods remains unchanged. The orders of petrochemical plants have not been improved, the traders have lagged behind in the delivery of goods, and there are many orders for profit giving. On the whole, the supply side did not support the spot price of ABS well in the month.

Cost: In February, the trend of the three upstream materials of ABS was generally strong first and then weak, which generally supported the cost side of ABS. At the beginning of the month, the industry load of domestic acrylonitrile was low, the inventory was low, and the supply was tight, pushing up the spot price. However, with the return of production capacity and the overall downturn of domestic demand and exports, the market price continued to decline after the bulls went out. However, the uncertainty of spot resources in March, and the uncertainty of expectations, to some extent, has curbed the downward trend of acrylonitrile in recent days.

The butadiene market was strong in the first half of the month, and decreased in the second half of the month, with a relatively wide decline. Due to the continuous rise of spot goods in the early stage, the ability of receiving goods at a high level in the downstream is affected. In the second half of the month, the supply side was relaxed, while the synthetic rubber futures market weakened, downstream demand was weak, and the market was deadlocked. There is a lack of positive guidance in the near future, and the industry is generally bearish. It is expected that the market trend will continue to be weak.

Styrene rose first and then fell in the first ten days of February. In ten days, the styrene unit continued to be at the level before the holiday, and there was cargo accumulation at the port before the holiday, so the supply side support was slightly weakened. In the second half of the month, crude oil fell, and the price of raw material pure benzene fell due to the poor shipment of Dongdi Refinery. Styrene benefit guidance is insufficient, and the market stagnates into consolidation.

Demand: On the terminal side, the previous flat pattern was inherited, and the recovery of downstream gas buying was slow in February. The resumption of the terminal factory was delayed within the month, and the overall load position rebounded slowly. At the same time, the terminal enterprises still have inventory to digest, the buying atmosphere in the market is depressed, and the flow of goods is slow. On the whole, the demand side is weak in supporting the ABS market.

In February, the domestic ABS market fluctuated and fell. The overall arrangement and operation of the upstream three materials provide general comprehensive support to the ABS cost side. The load of ABS polymerization plant is generally stable, and the accumulated high level of inventory rises. Demand side development is still insufficient, and production of some downstream enterprises returns slowly. Analysts from the SunSirs believe that the supply of ABS market is strong and the demand is weak, and the market will still be weak in the short term.

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