Price trend:

According to the bulk list data of business club, the domestic ABS market was weak this week, and the spot prices of some brands were reduced. As of June 24, the average price of general-purpose ABS mainstream offer was about 13200 yuan / ton, up or down -11.0% compared with the price level at the beginning of the month.

Factor analysis:

Industrial chain: in terms of raw material styrene, the market price of styrene fluctuated and fell this week. The main reason is that the crude oil price fluctuated and the cost support of the petrochemical industry chain weakened, resulting in the decline of styrene. In the early stage, there were a lot of plant maintenance for styrene enterprises on the site, and the port inventory decreased. However, the current downstream demand is weak, the market transaction is weak, and the spot price is weak.

The price of acrylonitrile was stable and weak this week. At present, the load of acrylonitrile in the domestic industry is high. There are some maintenance production lines this week, and the pressure on the supply side has decreased narrowly. Demand tends to be lagging and weak, and the ex factory spot price is weak and stable. There is bullish sentiment in the future market, and the spot price may stabilize.

This week, the domestic butadiene market was low. Affected by the unexpected shutdown of some units in East China, the supply side news boosted the market atmosphere, but the overall demand was weak, which was difficult to provide effective support for the butadiene market. The main production enterprises in Northeast China auctioned for the supply of goods, which led to the continuous decline of prices. The broad decline of the market further affected the downstream inquiry mentality, and the market stopped rising and turned down.

This week, the upstream three materials of ABS cost side had a poor trend, and the overall support weakened. In terms of industry load, recently, the operating rate of ABS enterprises has limited change, which is generally at a high level and has limited support for the supply side. The current industry is in the off-season market, and the mentality of the industry is not strong. The tension in Eastern Europe, Russia and Ukraine is still tense, but affected by the Federal Reserve’s interest rate hike, the crude oil price fluctuates, which is bad for the oil industry chain. The current market is mainly bad for the contraction of downstream demand in the off-season.

Future forecast:

According to the analysts of the business agency, the spot market of ABS fell this week, and the overall trend of the three upstream materials was poor, weakening the cost side support of ABS. Domestic spot supply is abundant and demand follow-up is poor. It is expected that the ABS spot market may fall in a narrow range in the short term.