This week, the styrene market experienced a weak decline, with an average price of 9064 yuan/ton on July 27th and 8690 yuan/ton on July 31st, a decrease of 1.13% during the cycle and a year-on-year increase of 12.95%.
Macro: On July 30th, international crude oil futures closed down. The settlement price of the September WTI crude oil futures contract in the United States was $83.59 per barrel, a decrease of $0.87 or 1.0%. The settlement price of Brent crude oil futures for October was $86.88 per barrel, a decrease of $1.21 or 1.4%.

Cost wise: The decline in crude oil prices has driven down the prices of chemical products. During the week, the production of pure benzene remained low, downstream losses continued, procurement enthusiasm was not high, downstream resistance to high priced sources of goods, port inventory accumulated, and pure benzene prices fluctuated widely.
Supply and demand side: During the week, some styrene plants unexpectedly reduced their load, and the industry’s operating capacity dropped to around 60%. Due to limited follow-up on terminal demand, the resistance to high prices is maintained, and the three major downstream industries are operating at a relatively low level. The overall supply and demand pattern of styrene is relatively loose, and the weekly styrene port inventory has increased. And with the end of the month delivery of paper goods, there is a lack of follow-up on replenishment demand.
Styrene external market: On July 30th, the closing price of styrene in the Asian region rose by $10/ton, and the FOB closing price in South Korea was $1120-1130/ton. The closing price of CFR China is 1135-1145 US dollars per ton.
Market forecast: The current styrene market is constrained by demand and prices are weakening. Looking at the future, it is expected that the supply side inventory will tighten, and the fundamentals are expected to improve. It is expected that the styrene market will have a strong trend in the short term.