Price Trend
According to the data monitored by SunSIrs, China ABS market is declining slowly when entering late July, and the spot prices in the market have been down partly. Up to July 28th, General Purpose ABS mainly offers the price at 12,900 RMB/ton, which has a 2.64% drop than the beginning of this month.
Factor Analysis
As for the upstream styrene, according to the data from SunSirs Bulk Commodity Pricing Index, the sample enterprises offer the average price at 5,316.67 RMB/ton on July 28, which decreases by 1.54%. It is reported that the inventory of styrene still stands highly, the condition of oversupply will not be promoted in a short time. In addition, this month many Chinese styrene production lines reopen, so the hazard of inventory accumulation really influences the state of businesses. The downstream factories still lack motivation about taking goods, and the sale burden of expensive materials is heavy. It can be predicted that styrene will encounter a fluctuating correction in the future.
As for the downstream styrene, the domestic condition will keep weak, and the market atmosphere is quiet. Early this month it is said that the reopening rate will climb, so the burden of supply will aggravate. Nowadays the styrene manufacturers lower the load to assuage the contradiction between supply and demand. However, the existing stock is still numerous, but the contradiction still remains. The downstream purchases rigid goods mainly, and is cautious about stocking up the goods. The shipment exists obstacle, and the factual transaction is little, so it can be predicted that the styrene market may function faintly.
China butadiene market condition is rising sharply. According to the data monitored by SunSirs, up to July 28 the average price is 4,234.44 RMB/ton, which has an increase of 22.09% than the beginning of this month. Recently, the downstream of butadiene has a certain amount of rigid purchase, and the market condition on the North continues rising, while the businesses on East China are not willing to sell in a low price, so the offer price disc climbs. In a short time, with the support of supply and outside information, high-priced commodity is teeming with the market, but in the future market there exists the anticipation about the increase on supply, and the downstream stocks goods carefully, so the transaction is ordinary. Nowadays, the low-priced source is difficult to find, and it takes on a supplier-dominated condition, so the market offer disk may retain sturdy. It’s estimated that recently butadiene will keep on at a high price.
Recently, China ABS market condition presents stability with a slight drop. Although in the first half of this month, the domestic ABS chemical industries operate in a full capacity. Although existing stock still keeps a low level, but the inner spot circulation starts to increase. And with the end of the month drawing near, businesses actively surrender the profits for delivery, and the downstream stock goods cautiously with normal demands, which causes a slight decrease in many grades.
Market Outlook
SunSirs analysts suppose that ABS market condition is steady with a little drop, and many grades have adjusted the price slightly lower. As for the aspect of cost end, the three upstream ingredients show varying trends, and their supports are not so good. At present, the supply of ABS spot starts to increase, and the downstream attitude to high-priced ABS is cautious, so they only give order with rigid demands. At present, the businesses begin to lower the price to finish the task, so the actual orders have space to make a bargain. It can be predicted that the price of China ABS will keep declining slightly.
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