ABS is difficult to welcome the "Golden Nine Silver Ten" peak season

Since the second half of the year, the overall market of acrylonitrile-butadiene-styrene (ABS) has shown a continuous downward trend

Zheng Xin, an analyst at Longzhong Information, introduced that ABS was in the golden development stage before, the market was in short supply, the industry operating rate was high, and the huge profits attracted many new devices in the industry to enter.

From the perspective of supply, the total domestic production capacity of ABS last year was 4.

He Junsong, a salesperson of Jilin Petrochemical, said that this year, ABS production enterprises have experienced two relatively concentrated production reductions, especially in June and July, when manufacturers limited production and raised prices

Nonetheless, the supply of ABS this year is still improving to some extent

From the perspective of the market outlook, ABS ushered in a concentrated release period.

According to industry insiders, if the above-mentioned devices are put into production as scheduled, it will intensify the influx of the ABS industry, and the market battle will be more intense

Brilliant no longer shrinks profits

According to Chu Caiping, an analyst at Jinlianchuang, in recent years, the profitability of domestic ABS manufacturers has been the envy of the industry

Last year was the most profitable year in the ABS industry, with an average profit of 5,315.

In addition to the fierce market competition, another reason for the shrinking of ABS profits is the high cost

Butadiene still plans to put into operation a total of 610,000 tons/year of equipment such as Dongming Petrochemical, Hainan Refinery, PetroChina Jieyang Petrochemical, Shenghong Refinery and Sanjiang Chemical

　　Looking at the market outlook, with the continuous release of new ABS production capacity, the contradiction between supply and demand has increased, the market bargaining power of manufacturers has been weakened, and the space for cost concessions is limited

　　Downstream sluggish demand lay flat

　　He Junsong and other market participants said that due to the impact of the real estate market, exports, epidemics, inflation, etc.

　　Data show that from January to July, the national real estate development investment fell by 6.

　　Looking at the terminal demand, the output of household refrigerators fell by 5.

　　For the market outlook, the Federal Reserve will continue to raise interest rates in September, which will restrain commodity prices
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In addition, the decline in demand and purchasing power in China's property market has a negative impact on the ABS market
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The "Golden Nine Silver Ten" is approaching, and some downstream demand margins will be improved, but the strength is limited.
For the ABS market, the peak season is not prosperous or a foregone conclusion
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