Demand growth is insufficient and capacity utilization is difficult to maintain

In terms of demand, the apparent demand for ABS from January to October in 2022 is 4.686 million tons, down 1.89% year-on-year. Among them, the production is 3.609 million tons, up 6.72% year-on-year, and the import is 1.142 million tons, down 22.01% year-on-year. The overall demand for 2022 does not grow.

In summary, seeing from the subsequent situation, the overall operation of the ABS market tends to be weak, and it is difficult to return to the high-benefit state of the past few years. The demand growth is insufficient, and the disadvantages of intensively commencement of production capacity have been clearly reflected in 2022, and the situation will continue to intensify in the later period. Low profits will be normal. In 2022, the support from the traditional peak demand season for the market is limited, and the decline in demand will be more rapid. In addition, the impact of the current epidemic is still maintained, raw material transportation and terminal product production in some areas are subject to certain restrictions, further affecting terminal demand. It is expected that the follow-up ABS market is still weak, and the price spread fluctuates narrowly in a short-term.