This week, the styrene market fluctuated and fell, with an average price of 10974 yuan/ton on October 12th and 10864 yuan/ton on October 16th, a decrease of 1.00% during the cycle and a year-on-year increase of 57.45%.
Macro: On October 15th, international crude oil futures closed higher. The US WTI crude oil futures have seen a significant increase, with the November contract settlement price at $97.97 per barrel, up $2.88 or 3.0%. Brent crude oil futures closed almost flat, with the December contract settlement price at $105.92 per barrel, a decrease of $0.14 or 0.1%.
Cost aspect: Recently, the market price of pure benzene has been rising, and the inventory in the main ports of East China is low. Some empty orders for mid month delivery have been replenished, which has driven the market price center higher. The transaction volume of Shandong pure benzene market is still acceptable, with active buying and receiving at low levels. The demand for essential goods is still acceptable, and short-term supply expectations continue to be slightly tight, indicating a strong market trend.
Supply and demand side: Due to high raw material prices, styrene losses have intensified, and there has been an increase in maintenance and burden reduction enterprises, resulting in a decrease in supply. The port inventory is low and the expectation of accumulated inventory is not strong, resulting in a weak overall supply side. Downstream high priced raw materials have strong resistance, and the three major downstream loads are operating at low levels. Under the weak supply and demand situation, the market trading atmosphere is weak and prices are falling.
Styrene external market: On October 15th, the closing price of styrene in the Asian region fell by $45/ton, and the FOB closing price in South Korea was $1435-1445/ton. The closing price of CFR China is 1375-1385 US dollars per ton.
Market forecast: The current styrene production is fluctuating at a low level, with high costs and low inventory dragging down the bottom and demand dragging down the rise. It is expected that the styrene market will continue to fluctuate at a high level in the short term.