Price trend:
According to the data of business club’s block list, the ABS market is generally weak in the near future, and most brands of products have been reduced. As of May 26, the average price of general ABS mainstream offer was about 18300 yuan / ton, which was 0.41% lower than that in early April and 52.50% higher than that in the same period of last year.
Factor analysis:
In terms of raw material styrene, the styrene market has been significantly weakened recently. Upstream crude oil, pure benzene and ethylene fell. Night market styrene soft down, although domestic styrene supply has increased, but the spot terminal inventory low, spot supply tension to maintain. On the downstream side, the prices of the three major downstream companies are temporarily stable, the terminal factories just need to purchase, and the market is short of gas. In the near future, styrene cost support is weakened, and it is expected that the market will continue to be weak in the short term.
As for upstream butadiene, the domestic butadiene market has been mainly consolidated recently. Business intention to stabilize the price offer, the downstream inquiry weak, there are some low price transaction in the market, dragging the market. High price source transaction is not smooth, short-term domestic butadiene market has no obvious direction, business community butadiene analysts expect the market will continue to consolidate.
ABS cost side market fluctuates, the overall support for ABS cost side weakened. In addition, the market is dominated by the bad external market, which has a drag on the domestic spot price. The positive effect of centralized maintenance of pre production units on the supply side is gradually exhausted, and ABS, which has officially entered the off-season of consumption, is difficult to boost the demand. Downstream enterprises just need to reduce, at the same time, due to the recent downward channel, buy up do not buy down mentality, weaken trading momentum.
Future forecast:
Business analysts believe that: ABS spot market fell recently, the current price position has fallen below the price of aquatic products at the beginning of the month. The trend of raw materials has its own ups and downs, among which styrene has a larger decline, and the overall cost side of ABS is bad. The current round of ABS decline is due to both the factors of falling styrene and the increasing resistance of off-season shipment in the industry. Superimposed on the external market is also bad led, it is expected that the recent ABS spot market may continue to be short.
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