ABS market bullish in China
ABS producers were decreasing the rate of operation in China as many domestic producers of derivatives such as automobiles were shut down due to weak demand until the first half of 2020. However, ABS demand for use in helmets increased as the Chinese government mandated the wearing of a helmet when riding an electric motorcycle in June. ABS demand for home electric appliances such as laptop computers has been strong since July as the number of companies implementing telework has increased due to the global spread of COVID-19. On the other hand, low inventories at ABS producers and low ABS imports caused supply to tighten. The operating rate of ABS producers is currently around 80-90%. Demand for derivatives for export is increasing and product inventories at producers of home electric appliances remain low. Owing to rising prices, there is a possibility that consumers will refrain from buying from now on. However, the ABS market is expected to be bullish in the long term due to tightness in demand and supply.