SunSirs: ABS Market was Narrow Shocked in July

　　According to SunSirs, the domestic ABS market fluctuated and adjusted in a narrow range in July, and the spot prices of various brands did not rise or fall much. As of July 31, the average price of mainstream offer of general-purpose ABS was about 17,800 RMB/ ton, an increase of 0.56% over the average price at the beginning of the month and 37.60% over the same period last year.

　　In terms of raw styrene, the domestic spot price fluctuated in July. It is expected that styrene may continue to fluctuate and weaken in the near future. Upstream, in July, the overall domestic butadiene market increased greatly, and business analysts expect the butadiene market to weaken.

　　In July, the domestic ABS market was generally stable, and the monthly amplitude of spot price was only 1.7%. The upstream market fluctuated, and it weakened at the end of the month. The ABS cost side market was general. In the first half of the month, the capacity loss caused by the overhaul plans of Shandong Jianghai, Jihua and Tongliao chemical industry and the overhaul plan of Tongliao chemical industry tightened the market supply, pushing up the prices of some brands. At the end of the month, the manufacturers gradually returned to work. Judging from the recent accumulation of finished product inventory, the overall supply of goods is in an incremental state. In addition, the market momentum is not strong, the profitability of the industry is general, the market momentum decreases, the demand shrinks, and the spot price decreases.

　　SunSirs analysts believe that the ABS spot market adjusted and operated in a narrow range in July, the trend of raw materials is OK, and the support for ABS cost is still exist. The supply support gradually weakened in the latter ten days due to the resumption of many units. At present, the demand for goods in the lower reaches of the industry is general. Under the stalemate, the market loses its orientation, the mentality of the industry has changed to cautious wait-and-see, and the on-site inquiry and actual trading have decreased compared with the previous. It is expected that the recent ABS spot market may adjust downward in China.