[ABS Weekly Review] Market Transactions Moderate This Week, Prices Continue to Decline

1. This Week's Hot Topics:

1） Market prices fell across the board this week.

2） Industry production increased this week.

3） This week, the petrochemical plant's inventory increased.

2. This week's ABS market trend:

This issue (July 2025) 17 July 2025 24 () ABS Price continue to decline This week's macro trend is bearish, with styrene and acrylonitrile prices declining, ABS. The manufacturer's cost support has weakened. From the supply side, the operating load of Jinfa facilities in Liaoning this week Continue Enhancement, ABS Overall industry output increases, supply increments. From the perspective of demand, it is currently the off-season for terminal demand, and the ABS industry is clearly experiencing a state of oversupply. From the perspective of sentiment, traders generally have a pessimistic outlook, with strong bearish sentiments, making it difficult for prices to rise. Overall, prices fell by 5 this week. 0-2 00 yuan/ton, from the market price perspective, the range for domestic materials is 9150-10. 0 00 yuan/ton, material range between 10150-10 50 0 yuan/ton.

3. Raw material market trend this week:

3.1 Styrene : This week, domestic styrene prices rose and then pulled back. High-end spot transactions in Jiangsu were at 7,600 yuan/ton, while low-end transactions were at 7,410 yuan/ton, with a price difference of 190 yuan/ton between high and low ends. During the week, positive macroeconomic factors fueled market optimism, driving up styrene prices. However, the macroeconomic drive was limited, constraining the price increase. Additionally, the supply-demand balance for styrene remained relatively stable. Continuous stockpiling at ports led to pressure on spot sales, and the rapidly weakening basis resulted in a larger decline in spot prices, creating a trend of initial price increase followed by a decrease within the week.

3.2 Butadiene: During this period, the domestic butadiene market experienced fluctuations and upward movement. Influenced by macroeconomic news, synthetic rubber futures rose rapidly at the beginning of the week, which boosted market sentiment for butadiene. This led to a short-term increase in trading activity, prompting suppliers to raise prices and driving the market upward. However, downstream buying interest remained based on immediate demand, leading to poor transactions at high price offers. After a short-term increase, the market demonstrated fluctuations and consolidation. By the end of the week, influenced by geopolitical factors and other elements, related downstream products saw a renewed upward trend, providing short-term support to the butadiene market. Although downstream buyers remained cautious, there was no lack of a wait-and-see attitude among traders. As of July 24th, the delivered price in the central Shandong region was between 9,550 and 9,750 RMB/ton, while the ex-tank self-pickup price in East China was around 9,450 RMB/ton.

3.3 Acrylonitrile: The current spot price of the acrylonitrile market remains stable, with the price range at East China ports between 8,000-8,100 yuan/ton and the Shandong market price range between 7,900-8,000 yuan/ton, both unchanged from last week. During this period, major manufacturers' quotations showed no fluctuations. Despite cost pressures, the willingness to maintain prices remains strong, and contract demand is stable, with major downstream ABS and acrylic fiber operations largely maintained, so acrylonitrile factory inventories are under no significant pressure. However, the buying momentum in the spot market remains insufficient, and there is no significant advantage compared to contracts, with purchasing based mainly on immediate needs, leading to an overall stalemate in trading. Overall, supply remains abundant, and in the short term, cost support is prompting the market to maintain a stalemate, waiting for this month's settlement to be released.

4. Market Forecast:It is expected that the supply and demand of ABS will remain in surplus in the next period, with macro crude oil weakening. Next week's transactions are expected to be driven by demand. Key points to watch: 1. Supply side. The operating load of Dalian Hengli's facilities will continue to increase next week, and the supply of ABS is expected to grow. 2. Demand side: Currently, it is the off-season for ABS procurement, and demand expectations are weakening. 3. Cost side. Prices of acrylonitrile, styrene, and butadiene continue to weaken, and it is expected that there will be little support from the cost side next week. Sentiment: With expectations of new capacity being released and consumption gradually entering the off-season, pessimism prevails in the market. It is expected that the domestic ABS market prices will remain relatively weak next week.