At the end of January, the domestic ABS market continued to rise, with most grades experiencing fluctuations in spot prices. According to the Commodity Market Analysis System of SunSirs, as of January 26th, the average price of ABS sample products was 8,850.00 RMB/ton, with a year-on-year increase or decrease of +7.27% in price level.

Supply level: Since January, the domestic ABS industry has had a large and stable load with small fluctuations. Recently, there has been a slight decrease in overall production, with some units of Zhejiang Petrochemical undergoing maintenance and release. The overall operating level of the industry has been reduced by about 3% to 67%, and the weekly average production has dropped to 142,000 tons. The inventory position of aggregation enterprises has leveled off at around 200,000 tons, and the supply on site tends to be tight and balanced. Overall, the supply-demand imbalance in the ABS market has eased in the short term, and the supply side still has sufficient support for ABS spot prices.

Cost factor: At the end of January, the upstream three material market of ABS rose and fell twice, which had a positive impact on the cost side of ABS. The acrylonitrile market has remained calm in the early stages, with average demand and pressure on local inventory, leading to continuous price reductions from major suppliers. Recently, the overall load reduction of the East China factory has led to the shutdown of a set of equipment in Silbang, temporary shutdown and maintenance of the Jieyang equipment in Jihua, and a reduction in supply from the supply side. Downstream users began to stock up on dips, and the acrylonitrile market bottomed out and consolidated.

The butadiene market is showing a significant upward trend. At present, the cost side crude oil prices are relatively high, strengthening bottom support. The supply side equipment maintenance, inventory clearance, and external linkage have formed multiple benefits. The demand side Shunding rubber has started to operate at a high level to provide sustained demand, and the imbalance between supply and demand has driven the market to strengthen. In the short term, the supplier's mentality of supporting prices will continue, and the load of the end of line butadiene rubber plant is likely to remain high, providing support for the butadiene market. It is expected that the domestic butadiene market will maintain a high volatility pattern.

The styrene market also saw a significant increase. The current resumption of work in the industry falls short of expectations, and supply side support has been strengthened. The increase in maintenance of overseas styrene plants and the increase in inquiries and actual transactions of styrene exports from China have further driven the depletion of port inventory. The situation in the Middle East is boosting crude oil prices, and the raw material pure benzene continues to rise. The fundamental improvement of styrene is significant, and it is expected that the styrene market will consolidate at a high level in the short term.

On the demand side: At the end of January, there was no significant improvement in the consumption of ABS's main downstream electrical appliance shell industry, and the improvement in the profitability of end enterprises was limited. In the early stage, the spot price was low, and buyers engaged in buying orders at low prices. However, with the recent rise in spot prices, there has been an increase in resistance towards high priced goods. Overall, the demand side provides moderate support for the ABS market.

At the end of January, the domestic ABS market continued to rise. The production load of the aggregation plant remains stable with a slight decrease, and the supply balance in the field is tight, maintaining a strong overall cost side. Business analysts believe that the macro level ABS supply and demand contradiction pattern is still present, but the strong momentum of buying orders at low prices in the early stage has eased production and sales pressure. However, the recent increase has been relatively large, and it is expected that buyers' acceptance of prices will decline, which may lead to a consolidation of ABS market in the future.

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