At present, the average operating rate of ABS manufacturers is about 40%. After the "May 1st," ABS raw materials such as styrene, butadiene, and acrylonitrile fell hard. In the absence of support on the demand side, the market sees the hollow state diverging. Comprehensive information, it is expected that ABS market outlook will continue to weaken the momentum of consolidation, it is difficult to change.

The upstream raw materials have fallen steadily due to the fact that international crude oil prices have fallen below US$100/barrel, and downstream chemical products have been adjusted downwards, which makes it difficult to form price support for the ABS market. The current price of Jihua 0215A products is 16200 ~ 14600 yuan (ton price, the same below), a drop of 1,000 yuan year-on-year.

The price of styrene styrene raw material remained stalemate for a long time. At the same time, due to the atmosphere of trading was light and transactions were poor, the market saw a serious hollow state. High-end prices in East China and other markets declined, showing a slight decline. The Tianjin Daxie and Fushun Petrochemical styrene plants have been restarted. The increase in supply has added to the market pressure. In the short term, styrene still oscillates in a narrow range, with 11,000 yuan or a high point, and it is difficult to break through.

The acrylonitrile market continued its downward trend after the May 1st Festival. The overall demand was flat and the supply was relatively sufficient. The manufacturers had to cut down the operating rate. Although the traders did not hold much stock, the entire market was bad and the ** mentality was serious. Limited, hard to see big bills. Expected market outlook is also difficult to pick up, the price will continue downward trend weakness.

After the holiday, the butadiene market dragged the domestic market down after the holiday. The sales subsidiaries of Sinopec lowered the price by 2,000 yuan. The price of ethylene in Panjin was lowered by 1,500 yuan, and the price of oil in northeastern PetroChina was lowered by 1,500 yuan. Although prices have fallen by a large margin, the domestic downstream prefers imported cargoes, which will put pressure on the domestic market. It was heard that butadiene equipment such as Yamba, Zhenhai Refinery, Qixiang Tengda, etc. will be gradually put into operation in the near future, and the supply will continue to increase, resulting in further increase in negative pressure.

Sufficient supply of the market supply surface sufficient to make ABS devices have to cut operating rates, has become the common fate of domestic and foreign enterprises. Taiwan Chi Mei has lowered the operating rate of an ABS device to 70%; the plan to increase the annual production capacity of the device to 150,000 tons at the Zhenjiang plant in July has also been postponed due to the sluggish market. South Korea's Kumho Petrochemical Company plans to close half of its ABS production capacity in Ulsan for at least one week; in May it also eliminates emission reduction plans.

In the domestic Zhenjiang Chi Mei company, due to the explosion on April 27th, the annual production capacity of 700,000 tons was suspended for approximately 20 days. At the same time, LG Kuixing’s annual production capacity of 700,000 tons of ABS equipment began to repair from the beginning of May, roughly 20 days.

At present, the average operating rate of ABS manufacturers is about 40%, and the daily output is about 6,000 tons. Nevertheless, it did not inject good market supply, and the market did not show any improvement. This is evident in the downturn of the market.

Demand has continued to slump ABS's main downstream businesses such as household appliances, automobiles, and toys have not improved. The procurement of raw materials has remained low, which is the most important factor restricting the ABS market from improving.

The unfavorable factors of the withdrawal of stimulus policies, sluggish domestic demand, and weak exports have brought heavy pressure to the home appliance industry. According to statistics, the sales of refrigerators in the first quarter of this year decreased by 12.40% year-on-year, and the sales of washing machines and air conditioners dropped by 20.20% and 32.10%, respectively. The color TV industry also saw no growth in the first quarter of this year. LCD TV sales fell 15.84% year-on-year, and plasma TV sales reached 468,800 units, down 16.75% year-on-year. Haier, Hisense, Midea and other major manufacturers of home appliances to the countryside, sales have dropped more than 30%. It can be foreseen that the home appliance industry will be sluggish or become mainstream in 2012.

The news of the auto market is also bad. According to data from the China Association of Automobile Manufacturers, car sales in the first quarter of 2012 decreased by 3.4% year-on-year, and auto production also declined by 1.8 percentage points.

Toy industry is also difficult to see the dawn. The toy industry is a labor-intensive industry, but labor shortages, labor costs, and the rapid rise in operating costs are still major problems. Especially in the context of the appreciation of ***, exports have been shrinking; while foreign product safety standards, toy companies need to continue to increase facilities, equipment and strengthen the quality of monitoring and management, further increase the operating costs and reduce corporate profits. Many companies have taken measures such as reducing production load and even parking.

In summary, the negative factors in the ABS market are gathering. It is understood that the production line will be completed and put into production in the second half of the year. This is undoubtedly a bearish factor for the markets that have been under weak consolidation and will limit the room for price rebound. Narrow turbulence or a full-year portrayal of ABS.

Special note: This information is provided by the relevant company itself. The authenticity is not confirmed and it is for reference only. use at your own risk.