The industry load is high, and the weakness of ABS market continues

Price trend


Chitosan oligosaccharide

Recently, the domestic ABS market continued to be weak, and the spot price was weak and stable. As of March 6, the average price of ABS sample products was 11833.33 yuan/ton, up and down by – 1.39% from the average price level a month ago, according to the data monitoring of Business News Agency.


Cause analysis


In terms of raw materials: the overall performance of ABS upstream three materials was mixed in recent years. Among them, the market of acrylonitrile stabilized slightly last week. Some factories issued maintenance plans, while the supply was stable. Besides, the goods in the field are flat, and the enthusiasm of downstream goods preparation is general. The market is mixed, and the acrylonitrile market is expected to consolidate in a narrow range in the short term.


Recently, the domestic butadiene market fell back from a high level. Due to the limited increase in synthetic rubber, the profit was under pressure, which affected the decline in the industry operating rate, and the demand of butadiene market gradually weakened. The resource side of superimposed shipments increased, and supply and demand were weak. It is expected that the domestic butadiene market will continue to decline in the short term.


Last week, the styrene market in Shandong rebounded and rose in a narrow range. Although the terminal demand has not improved, the port inventory is still at a high level to be digested. However, pure benzene rose due to the impact of the recovery of international crude oil price, and the cost side supported the spot. However, at present, styrene is still in the process of deionization, and the market may be difficult to further strengthen.


Gamma-PGA (gamma polyglutamic acid)

On the supply side: the ABS industry has been running at high load for more than a month, and the operating rate was still at 96% at the end of last month. Recently, due to supply-side pressure and fierce competition for new materials, petrochemical plants have begun to reduce the burden independently, but last week the industry load fell by a narrow margin. At present, the supply of goods in the field continues to be abundant, and domestic inventory accumulates. The factory was forced to reduce the ex-factory price in order to remove the stock, and the supply side dragged the spot price.


Demand: Downstream factories, including the main terminal appliance industry, are generally motivated to stock goods recently, and some manufacturers still have pre-holiday raw material inventory to digest. The overall demand improvement is limited, the overall trend is weak, and the flow of goods in the field is poor.


Aftermarket forecast


At the beginning of March, the trend of ABS upstream three materials was mixed, which supported the cost side of ABS generally. The high starting point of the petrochemical plant fell back in a narrow range, and the market supply of goods was abundant and the inventory rose. The demand-side support is poor, the mentality of merchants is weak, and the operation is biased to yield profits and take orders. It is expected that the ABS market will continue to be weak due to the impact of supply and demand contradiction in the short term.