245% tariff impact, ABS market crisis reappears?
Recently, affected by the US reciprocal tariffs, styrene was the first to break through and fall, and butadiene was also suppressed. As the cost support was greatly weakened, it offset the support expectations brought by the maintenance of petrochemical manufacturers. The mentality of merchants in the market was cautious and bearish. Some strong brands in the early stage showed signs of loosening quotations, and the probability of the market returning to a pessimistic trend increased. ABS plastic products and materials are expected to fall.
The butadiene market rose first and then fell. Due to the approaching holiday in the early stage, some downstream companies covered their positions after the decline. At the same time, as some auction sources were sold at a premium, the market center of gravity rose significantly. Recently, the news of the US tariff increase affected the decline of futures, and the news affected the downstream buying cautiously. The market price fell significantly. There are many negative factors in the future market, and it is expected to run weakly. The price of ABS plastic products in the entire Chinese market fell, affecting market expectations.
The acrylonitrile market fell and then rose slightly. In the early stage, the contradiction between supply and demand in the market was sharp, and the market went down all the way. Fortunately, the terminal purchases entered the market at a low point to support the price of acrylonitrile, and the market bottomed out temporarily. The recent supply reduction has stopped the decline in spot prices and slightly rebounded. Considering that the overall supply is still abundant, the market is expected to be mainly in a narrow range in the short term.
The focus of styrene negotiations has shifted significantly downward. Although the recent maintenance plan on the styrene supply side has been slowly implemented, the supply and demand side has a weak support effect on styrene. Affected by this, styrene prices have been under pressure to fall. In addition, after the implementation of the current equal tariff policy, international oil prices have plummeted, further impacting the styrene market. It is expected that market pessimism will increase and prices will continue to fall.
In summary, the three major upstream monomers may continue to show a weak pattern, and the profit margin of
ABS Plastic Parts products may improve again. Although the overall operating rate of petrochemical plants has dropped below 70%, and the inventory has been slightly reduced, the overall inventory of nearly 200,000 tons is still under pressure. Coupled with the weak consumption on the downstream demand side, the subsequent market trend of ABS plastic parts is not optimistic, and the industry still needs to pay attention to more news guidance.
