At the end of March, the domestic ABS market was operating at a high level, with some spot prices of certain grades fluctuating. According to the Commodity Market Analysis System of Shengyi Society, as of March 26th, the average price of ABS sample products was 12000 yuan/ton, with a price level increase of 34.43% compared to the beginning of the month.
Fundamental analysis
Supply level: In the second half of the month, the domestic ABS industry will restart and undergo maintenance, with overall limited load changes. The overall operating level of the industry is around 69%, with an average weekly output of nearly 150000 tons, and finished product inventory levels have rebounded to 200000 tons. After the addition, there will be little change in the short-term production of the market, and the on-site supply will shift from tight balance to abundant. Overall, the support for spot prices from the ABS supply side is stable but weak.
Cost factor: In late March, the volatile situation in the Middle East continued to raise concerns among industry players. And some countries have significantly reduced their crude oil production due to force majeure. Combined with the firm stance of OPEC+production cuts, international oil prices have been fluctuating at high levels recently. The upstream three materials of ABS, which belong to the same petrochemical products, have basically increased at a high level. The price increase of acrylonitrile in the market has further expanded. Due to the decrease in port arrivals, domestic spot sales have been smooth, and even partial export windows have emerged. The main supplier’s quotation has remained firm and increased.
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