The ABS market in China rose slightly in January. According to the data monitoring of the Business News Agency, the average price on January 16 was 11850 yuan/ton,+0.85% higher than the average price at the beginning of the month.
In terms of raw materials: ABS upstream three materials have been relatively strong in recent years. Among them, the market price of acrylonitrile rose slightly, and the price of raw material propylene rose. In addition, the manufacturer’s listing price rose in January, and the merchant’s offer rose.
Recently, the domestic butadiene market has continued to rise, the prices of mainstream suppliers have risen strongly, and the inventory of East China tank farm has declined, supporting the firm intention of some merchants to offer. However, some of the high prices still need to be followed up. It is expected that the domestic butadiene market will run at a high level in the short term.
The mainstream price of styrene in Shandong rebounded after falling last week, and the overall price rose. The international oil price rebounded, the pure benzene market rose slightly, and the downstream remained just in need of bargain-hunting and replenishment, while the styrene market rose supported by costs. As the Spring Festival approaches, the preparation of goods before the holiday is superimposed on the export pickup, and the styrene market is expected to rise in the short term.
On the supply side: the load of ABS industry remained high last week, the current plant operation was stable, and the supply of goods on the site continued to be abundant. As a result of the enterprise’s inventory reduction and decompression operation, the inventory position fell back, and the ex-factory price increased steadily.
In terms of demand: at present, the downstream factories including the main terminal appliance industry are in order to prepare goods, and the early stage of goods preparation in the field before the festival is basically completed. In the near future, the demand tends to be stable, and the goods are normally transported in the field. Buyers and merchants followed the market and performed steadily.
In the middle of January, the trend of the upstream three materials of ABS was relatively strong, which supported the cost side of ABS moderately. The petrochemical plant started at a high level and the supply was stable. Before the end of the demand period, the stock support was general, the seller’s offer was firm, and the market was firm. It is expected that the ABS market will be dominated by shock consolidation and operation in the short term.