SunSirs: Weak Demand, China ABS Market Cooling rapidly

　　According to SunSirs, the domestic ABS market fell, and the spot prices of various brands generally decreased. As of October 22, the average price of mainstream offer of general-purpose ABS was about 17,700 RMB/ ton, up or down -0.58% compared with the price level at the beginning of the month.

　　Industrial chain: the recent market trend of upstream styrene is in the stage of falling after rising, crude oil is high, propylene price has risen, and the cost side support of styrene is stable. The on-site merchants have sufficient inventory and have the operation of transferring profits for shipment. Last week, the price of acrylonitrile was stable and small, and the merchant’s offer was relatively stable. Recently, the domestic butadiene market has risen, the prices of foreign and domestic suppliers have continued to rise, and downstream inquiries have been actively followed up, boosting the transaction price to rise significantly.

　　The upstream market fluctuated, and the cost side support of ABS was general. The recent power restriction and environmental protection policy has led to the downturn of downstream construction, increased resistance to merchants’ shipment and frequent profit making shipments.

　　SunSirs analysts believe that the spot market of ABS fell last week, and the trend of the three upstream materials fluctuated, which generally contributed to ABS. Domestic ABS downstream related enterprises are jointly affected by environmental protection related policies, and the operating rate has decreased. In addition, the traditional peak demand season is approaching the end, and the support of demand for spot goods is gradually weakened. Buyers’ purchase shrinks, merchants sell goods at a profit, and the offer is lowered. It is expected that China ABS spot market may still fall slightly in the short term.