Price Trend

Mainstream domestic prices of styrene rose first and then fell this week, according to a large number of data monitored by business associations. Last Friday (June 14) the sample price of business associations was 8966.67 yuan/ton, and this Friday (June 21) the sample price of business associations was 8966.67 yuan/ton, an increase of 0. Prices fell by 21.43% over the same period last year.

II. Market Analysis

Products: This week, the market price of styrene rose first and then fell. The market supply is tight. The total inventory of East China Styrene Reservoir is about 132,500 tons, and the inventory of commodities is about 76,000 tons. In the styrene market, the volume of trade transferred to the factory, resulting in a sharp decline in commodity inventory. It is forecasted that by early July, although the arrival of styrene in the port is concentrated, the overall arrival of styrene is still relatively small, so the inventory in East China still has a downward trend. At present, the inventory of East China Styrene Port is low, which is similar to the level in 2016. Compared with the level in 2018, there is still a big gap. However, although the inventory of East China Styrene Port is expected to decline, the speed of picking up goods at the port is declining and the decline of inventory in the main port will slow down, which will not be conducive to the possibility of styrene bullish. The overall styrene market is in a downward consolidation. Holders are bullish for a long time, sometimes at the expense of sales, but the support is weak. Next, market prices will be mainly narrow consolidation.

Industry chain: This week, the purchasing atmosphere of raw materials domestic pure benzene continued to rise, bringing higher support to the price of styrene. But at present, the profit of styrene industry is good, which maintains at the level of 2000 yuan/ton or above. The profit of downstream EPS and PS is weaker than that of styrene. The profit of downstream EPS and PS is general, the demand of end products is weak, and the stock of finished products in EPS and other industries is increasing, which will surely have a drag on the price rise of styrene.

3. Prospects for the Later Period

This week, the peripheral oil market closed up, the US dollar plate remained high, and the orientation of styrene was good. At present, the manufacturers that had carried out the maintenance of styrene plant in the first half of the year have restarted the plant, and the domestic styrene stock will gradually improve. Although the manufacturers are willing to follow the market up, the raw material pure styrene skewed, the price of ethylene narrowly declined, and the cost side support is general. Styrene prices are expected to fall in the short term next week, but not exclude a small rebound after a series of declines.