The Expected Silver October' ABS market is not optimistic

In October, the ABS spot market was affected by both the negative cost side and the poor performance of downstream demand, and the price center of each brand showed a downward trend.

 Styrene price chart

As of October 28, the mainstream offer price of domestic general-purpose ABS was about 16,900-18500 CNY/ton, which was an average drop of 2.39% compared with the mainstream offer price at the end of September, which was 17,550-18700 CNY/ton; compared with the same period last year, the offer price was 15,400. -16,700 CNY/ton, roughly an average increase of 10%.

Trend analysis of Plastic City:

Upstream cost support is gradually losing, petrochemical companies have repeatedly lowered ex-factory prices, end users have been affected by the dual-control policies and the operating rate has declined, and the traditional peak season for demand is coming to an end, resulting in a gradual decrease in purchasing enthusiasm.

Due to this restriction, traders The mentality is confused. Considering the difficulty of grasping the market outlook, there are often the phenomenon of fleeing profits in actual operation.

Cost analysis:

In terms of styrene, crude oil was high in the early stage and the price of ethylene rose. Styrene's cost-side support is relatively stable. The downstream is subject to dual control restrictions towards the end of the month. The expected increase in demand is limited. The inventory supply during the month remains relatively abundant. More profitable shipping operations.

In terms of butadiene, the early downstream inquiries cooperated with active follow-up, and the market trend changed its downward trend. The center of gravity of external and domestic prices continued to move upwards. As the end of the month was affected by the negative effects of commodities, butadiene offered a correction.