This week, the styrene market experienced a weak decline, with an average price of 7870 yuan/ton on June 22 and 7490 yuan/ton on June 26, a decrease of 1.83% during the cycle and a year-on-year decrease of 8.26%.
Macro: On June 25th, international crude oil futures closed higher. The settlement price of the August WTI crude oil futures contract in the United States was $71.92 per barrel, an increase of $1.58 or 2.2%. The settlement price of Brent crude oil futures for September was $75.50 per barrel, an increase of $1.63 or 2.2%.
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Cost wise: The price of pure benzene has weakened and fallen. The geopolitical premium has fallen, oil prices continue to decline, and chemical costs have collapsed. At the same time, the market lacks confidence in the demand side, and the market sentiment tends to be pessimistic. Although there is still an expectation of destocking in the supply and demand of pure benzene in June. However, the early maintenance equipment in overseas markets has returned, and the tight supply situation has eased to some extent. However, some non integrated equipment varieties have fallen into losses, and negative demand feedback continues to drag down market sentiment.
Supply and demand side: Large scale maintenance facilities in China have been restarted one after another, and the industry’s operating rate has rebounded from a low level, with the operating rate increasing to around 70%. Terminal demand has entered the off-season, downstream finished product inventory digestion is slow, and the main downstream ABS and EPS production may decline, resulting in a weak overall supply and demand pattern.
Styrene external market: On June 25th, the closing price of styrene in the Asian region fell by $15/ton, and the FOB closing price in South Korea was $985-995/ton. The closing price of CFR China is 970-980 US dollars per ton.
Market forecast: Geopolitical premium will fall, costs will decrease, and styrene supply will tend to be loose. It is expected that styrene will have a weak and volatile trend in the short term.
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