Price Trend

Mainstream domestic prices of styrene continued to decline this week, according to a large number of data monitored by business associations. According to data from business associations, the price of sample enterprises on Monday (Oct. 07) was 8666.67 yuan/ton, and on Friday (Oct. 11), the price of sample enterprises was 8250.00 yuan/ton, a decline of 4.81%, which was 30.40% lower than that of the same period last year.

II. Market Analysis

Products:

Styrene market prices fell sharply this week. Internationally, as of Thursday (October 10), Asian Styrene CFR China closed at $965-985 per ton, down $22.5 per ton; FOB Korea closed at $935-955 per ton, down $22.5 per ton. On the domestic side, the supply of styrene market is in good condition, the oil market has fallen sharply. After the National Day, the demand side has not been improved. The downstream maintains low demand, the recovery demand increases slowly, which is lower than the expectation of the merchants. Some of the pre-maintenance devices are at the end, the supply of domestic goods is increasing, and the stock pickup is poor. In addition, the volume of imported styrene arrives at the port in the early period of the National Day is large. As a result, Post-Savings styrene port stocks remain high. In recent years, the cost price of styrene has declined slightly, and domestic enterprises have kept the profit space. After the quotation of domestic enterprises has been lowered, they have basically stabilized temporarily. Most of them wait and see. The traditional mentality of “buy up, don’t buy down” influences the market into the short-term buyer’s market.

Industrial chain:

On the upstream side, crude oil prices continued to fall sharply before the festival this week, with Brent crude oil falling 5.8% and WTI crude oil falling 5.94%. Pure benzene prices are affected by crude oil. This week, prices continued to fall, falling by 1.95% this week. Ethylene also fell, down 3.29% this week. On the downstream side, PS and EPS declined slightly, PS declined 0.68% and EPS declined 3.69%. Downstream enterprises have a general start-up rate, downstream buying is not active, and the market for styrene has fallen. Styrene production enterprises still maintain a certain profit margin, but the space is narrow, the entire industrial chain, lack of strong and empty.

Industry:

Overall, this week’s styrene market prices have fallen sharply, the decline has increased, most domestic enterprises have reduced prices and promoted sales, downstream mainstay low demand, spot maintains the “buy-up-do-not-buy-down” mentality, wait-and-see increases, some market holders profit-taking, profit and short clouds, the current market temporary consolidation slight decline in consolidation situation.

3. Prospects for the Later Period

International oil prices and energy prices have fallen continuously this week. Domestic enterprises are stepping up inventory and trading is flat. Styrene is expected to be dominated by low-level consolidation next week.