In 2022, the five-year high-profit model of ABS industry ended and officially entered the stage of loss. The new production capacity has not been fully released, and the terminal demand has been greatly reduced due to the impact of the global epidemic and China’s domestic economic recession. Under the mode of demand and capacity expansion, China’s ABS industry is struggling to survive, and it is not excluded that it will struggle near the cost line in the future.
ABS profit in 2020 is 4193 yuan/ton, the production capacity of the upstream raw material styrene new device is released, the price of styrene falls to the low level, butadiene overcapacity, the price is low, and the ABS industry is in short supply, so that the profit of the industrial chain is maintained in the downstream ABS, the ABS industry profitability is good in 2020.
The year 2021 is the best year for ABS industry profit. Take Zhenjiang Qimei as an example, the total sales volume in 2021 is 18.3 billion yuan, and the tax payment is 1.9 billion yuan. The average ABS industry profit in 2021 is 5315.6 yuan/ton. 2021 is the best year for industry profits in the past five years, mainly because China is the first country to recover from the epidemic, the world’s orders flooded into China, leading to a sharp rise in the price of ABS in China, petrochemical plant profits exploded.
As of 2022, the profit of ABS industry is 1,631 yuan/ton. The profit of ABS industry is significantly reduced compared with 2021. Recently, there is a loss situation, and some petrochemical plants limit production and guarantee price. Since 2022, the real estate market and export, epidemic, inflation and other effects, home appliance manufacturers huge cost pressure, reduced the volume of orders, ABS terminal greatly reduced demand, combined with China’s real estate market downturn, house completion area fell, period room can not pay on time, greatly reduce the demand for ABS, prices were low.
Post time: Aug-31-2022