Since the concentrated release of production capacity in 2023, the competition pressure among ABS enterprises has increased, and the super lucrative profits have disappeared accordingly; Especially in the fourth quarter of 2023, ABS companies fell into a serious loss situation and did not improve until the first quarter of 2024. Long term losses have led to an increase in production cuts and shutdowns by ABS petrochemical manufacturers. Coupled with the addition of new production capacity, the production capacity base has increased. In April 2024, the operating rate of domestic ABS equipment has repeatedly hit a historic low. According to data monitoring by Jinlianchuang, in late April 2024, the daily operating level of ABS dropped to around 55%.
In mid to late April, the trend of the raw material market was weak, and ABS petrochemical manufacturers still had upward adjustment operations, which led to a significant improvement in the profitability of ABS manufacturers. It is rumored that some have overcome the loss situation. Positive profits have boosted the enthusiasm of some ABS petrochemical manufacturers to start production.
Entering May, some ABS devices in China have completed maintenance and resumed normal production. In addition, it is reported that some ABS manufacturers have good pre-sale performance and there has been a slight increase in production. Finally, the qualified products of Dalian Hengli ABS began to circulate in late April and will gradually flow into various markets in May.
Overall, due to factors such as improving profits and the completion of maintenance, the enthusiasm for starting construction of ABS equipment in China has increased in May. In addition, there will be one more natural day in May compared to April. Jinlianchuang preliminarily estimates that the domestic ABS production in May will increase by 20000 to 30000 tons month on month, and it is still necessary to closely monitor the real-time dynamics of ABS devices.
Post time: May-13-2024