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Asian ABS Market Sustains Strong Performance in the Mid-March 2024
Asian ABS Market Sustains Strong Performance in the Mid-March 2024

Asian ABS Market Sustains Strong Performance in the Mid-March 2024

  • 21-Mar-2024 3:48 PM
  • Journalist: Xiang Hong

The Asian ABS (Acrylonitrile Butadiene Styrene) market sustains a robust trend, witnessing a continuous surge in spot prices during mid-March 2024. The ABS market fundamentals remained bullish, with a potential for further short-term rises as upstream material performance stabilizes and demand strengthens amidst easing supply pressures.

According to the latest data, as of the week ending March 15, 2024, the price of ABS soared, marking a notable increase of 1.3% in the Chinese market.

On the demand front, mid-March sees a resurgence in stocking enthusiasm among downstream factories of ABS's main terminals, particularly in the home appliance industry. This increase in production scheduling has led to a rise in factory loads, subsequently boosting demand purchases. Despite some resistance towards post-price increase supply, overall ABS consumption remains high. Traders actively report high prices, enhancing spot trading, with the demand side continuing to offer support to the market.

Regarding supply dynamics, the Jieyang unit of China National Petroleum Corporation has commenced maintenance activities, further reducing the industry device load to around 60%. In March 2024, the PetroChina Jilin Petrochemical Company at Jilin, Guangdong Province (China) reduced production rates to 0 from the total production capacity of 50000 TPM of ABS due to the scheduled Maintenance Shutdown for 31 days in China.

This scenario, combined with the limited operating rate of ABS aggregation enterprises, tightens the market's supply pattern. Despite a slight flattening in production enterprise inventories last week, overall, the supply side continues to lend support to spot goods adequately.

In terms of raw materials, mid-March witnessed an overall uptrend in ABS upstream three materials, albeit with a narrow consolidation range in the acrylonitrile market. While the price of raw material propylene experienced a slight decrease, weakening the cost support for acrylonitrile, downstream products maintain essential support. Meanwhile, the Butadiene market experienced slight fluctuations and consolidation, initially falling before rising. This trend is influenced by an inverted profit situation in main downstream products, leading to subdued downstream inquiry intentions. However, external market price support coupled with downstream hard demand stocking provides a boost to the market. Similarly, the styrene market witnesses a high-level price rise, with stable and strong cost support amidst tightening supply patterns, indicating a likelihood of continued fluctuation and strengthening in the short term.

As per ChemAnalyst, the ABS prices are expected to fluctuate towards the bullish market situation in the Asian market amidst tight supplies and a rise in the upstream and feedstock values in the coming weeks despite a slow downstream market momentum.

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