Strange incidents add to ABS breakout in first half of 2020

On June 16, 2020, the International Energy Agency (IEA) released its monthly crude oil market repo.

In the first half of the year, the ABS market trend of Plastic City was summarized: in the first quarter, the panic in the ABS market intensified and the market plummet.

The trend of the ABS market in China Plastic City in the first half of the year:

It can be seen from the above picture that in the first half of 2020, due to the superposition of various emergencies and news in the inner and outer periphery, the prices of mainstream grades in the ABS market in China Plastics City have experienced many roller coaster-like market tren.

The trend of styrene in Zhangjiagang in the first half of the year:

In the first half of the year, styrene showed a steady decline in the early stage, plummeted and rebounded in the mid-term, and oscillated in the later sta.

In the first quarter, market demand was expected to weaken in January, and the fundamental weakness gradually emerg.

Market outlook:

Upstream: The continuous rise of crude oil has driven the overall price center of the three monomers of ABS to move up, and the theoretical production cost of ABS has ris.

In terms of petrochemical: The average operating load of domestic petrochemical manufacturers is close to 100%, of which 50% of Shandong Haijiang and 80-90% of Tianjin Dagu are operati.

Downstream: Although the speculative demand related to helmets in the early stage has dissipated, the normal demand lagging behind due to the epidemic is gradually recoveri.

To sum up, the favorable supply and demand side will continue to dominate, but it is also necessary to consider the limited orders from small and medium-sized downstream, the pressure of high-level transactions, and the impact of profit-taking in the spot mark.