[abs daily review] market bottom-fishing and raw material price rise drive strong sales today

1 Today's Summary:

1. Prices in the East China market fell today; prices in the South China market underwent a corrective adjustment, but after the decline, there was bargain-hunting buying in the market.

The price of styrene has risen, coupled with the oversold condition of ABS, leading to market bottom fishing for purchases, resulting in an overall increase in transaction volume.

2 Spot Market Overview:

Table 1 Domestic ABS Price Summary (Unit: Yuan/Ton)

With reference to the Yuyao and Dongguan regions, prices in the East China market have declined, while prices in the South China market are undergoing a corrective consolidation. ABS Prices have fallen sharply, and some mid-cap stocks have seen increased buying volume. Additionally, today's rise in styrene and the news of reduced production from Shandong independent refineries have fueled bullish sentiment in the market. It is expected that ABS market prices will stop falling and stabilize tomorrow.

3 Production Dynamics

The 200,000 tons/year ABS unit of Shandong Haijiang was shut down for maintenance on August 28 and restarted on October 5. It has been shut down since December 1. The unit is currently out of operation.Shandong Lihua Yi's 400,000 tons/year ABS unit started operating at 60% capacity on May 9.

Figure 2 Weekly Trend Chart of Domestic ABS Capacity Utilization Rate	Figure 3 Weekly Domestic ABS Cost and Profit Trend Chart
Data source: Longzhong Information	Source: Longzhong Information

4 Price Prediction:

Based on the Yuyao and Dongguan regions, prices in the East China market declined, and prices in the South China market declined. Today, raw material prices rose, and some downstream end-users and midstream traders took advantage of the lower prices to replenish inventory. Market transactions increased in volume, and ABS market prices are expected to stop falling and stabilize tomorrow.

5 , Related Product Information:

Styrene Market ： According to the afternoon news, Zhejiang.Styrene marketPost-rally consolidation During the session, crude oil prices rose, and the main contracts for pure benzene and styrene consolidated on a strong note. Sellers in the styrene market held firm on offers, while buyers purchased as needed.It is reported that the reference price is at 9140/9190 yuan/tonne 。

Acrylonitrile Market ： Today in East China regionAcrylonitrile market priceThe price has dropped, with mainstream delivery reference prices at 10,300-10,600 yuan/ton, a decrease of 100-200 yuan/ton compared to the previous trading day. Supply is ample, but demand remains lukewarm, leading to a continued downward trend in the negotiation focus of the spot market.

Butadiene Market: As of press time, the ex-tank self-pickup price of butadiene in Jiangyin, Jiangsu is referenced at around RMB 11,750-11,850/mt, up RMB 50 from the previous period. Suppliers in the region are cautiously testing the market with shipments, and some intermediaries still intend to hold firm on prices, but downstream resistance to high prices remains.

Table 4 Domestic ABS Data Overview (Unit: 10,000 tons)