[ABS Daily Review] Today's Transactions Driven by Rigid Demand, Prices Continue Downward Trend

1 Today's summary:

Today, the market prices in East China have declined; the market prices in South China have also decreased, with market transactions maintaining just the necessary demand.

In October, the monthly production of ABS significantly increased compared to the previous month.

2 Spot Overview:

Based on the regions of Yuyao and Dongguan, prices in the East China market are declining, and prices in the South China market are also falling. Today, the market transactions are driven by rigid demand, with multiple negative factors in the market. Traders continue to offer discounts to sell their goods, leading to a decline in the market. It is expected that domestic ABS market prices will maintain a bearish trend tomorrow.

3 Production Dynamics

The 200,000-ton/year ABS plant of Shandong Haijiang was shut down for maintenance on August 28th and was restarted on October 5th.

Figure 2: Weekly Domestic ABS Capacity Utilization Trend Chart	Figure 3: Weekly Domestic ABS Cost-Profit Trend Chart
Data source: Longzhong Information	Data source: Longzhong Information

4 Price Forecast:

Based on the regions of Yuyao and Dongguan, prices in the East China market are declining, while prices in the South China market are experiencing a slight drop in certain areas. The supply remains high, with many bearish factors in the market, and traders are offering discounts to sell. It is expected that the ABS price will continue to decline slightly tomorrow.

5 Related Product Information:

Styrene Market ： In the afternoon, the prices of raw materials, crude oil, and main contracts increased. There were some replenishment transactions in the market, and trading in the Zhejiang styrene market fluctuated and rose, with negotiation intentions heard at 6580/6620 yuan/ton. 。

Acrylonitrile Market ： Today's East China RegionAcrylonitrile MarketThe stalemate is slightly weak, with mainstream delivery reference prices at 8000-8100 yuan/ton, down 50 yuan/ton compared to the previous trading day. Overall supply in the region is ample, while spot demand is poor, leading to a weak market fluctuation.

Butadiene Market ： As of the time of writing, the ex-tank self-pickup price of butadiene in Jiangyin, Jiangsu is around 8250-8350 yuan/ton, a decrease of 25 yuan compared to the previous period. The main downstream synthetic rubber futures market is showing a strong trend, and some traders have firm offer sentiments. However, downstream buying interest is weak, and there are few reports of actual transactions.

6 Data Calendar

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