An unexpected increase in China’s home appliance sales in the second quarter supported an uptrend in domestic demand for acrylonitrile-butadiene-styrene (ABS). Industry sources told SSESSMENTS.COM that ABS plants in China have been operating at above 95% rates since May amid robust demand from electronic appliance producers from late April.
Latest statistics seen by SSESSMENTS.COM showed a 2.64% year-on-year increase in China’s home appliance sales during the April-June quarter. The increase was mostly driven by a stronger-than-expected recovery in consumer demand after the country emerged from the coronavirus-related lockdowns in the previous quarter when home appliance sales tumbled 14.13% year-on-year.
The data released by China Center for Information Industry Development indicate home appliance sales peaked in June with a 9.8% year-on-year rise following May’s 4.3% year-on-year increase. Separate data from the National Bureau of Statistics showed large household appliance production recorded positive growth in June, with refrigerator production surging 21.7% year-on-year to around 8.9 million.
Asian ABS prices declined from an eight-month high of $1,430/ton CFR China on June 17 to $1,360/ton CFR China on July 29. Market participants informed SSESSMENTS.COM that despite the decline, ABS profit margin remained unusually high. However, they expected prices to continue decreasing in the third quarter due to seasonal weak demand for consumer goods and bearish outlook stemming from the global resurgence in COVID-19 cases.
