Price trend

According to the SunSirs’ Commodity Analysis System, the styrene market saw a volatile decline in July, with prices averaging 8,036 RMB/ton at the beginning of the month and 7,694 RMB/ton at the end, a monthly decline of 4.26%. The styrene market in July was driven by fundamentals, supplemented by macroeconomic factors. Styrene profits remained acceptable throughout the month, with industry operations remaining high and port inventories elevated. Due to industry profit compression, downstream EPS/PS prices saw some factories operating at reduced capacity and adopting a cautious approach to raw material procurement. Weak fundamentals created significant resistance to styrene price increases, leading to a volatile downward trend.

Analysis review

On July 30, international crude oil futures rose. The September contract for U.S. WTI crude oil futures settled at $70.0 per barrel, up $0.79, or 1.1%. The September contract for Brent crude oil futures settled at $73.24 per barrel, up $0.73, or 1.0%.

Cost: Benzene prices in Shandong Province experienced a volatile upward trend in July. Prices fluctuated downward in the first half of the month, then rose and then fell in the middle of the month, before rising sharply in the second half of the month. On July 1, the price was 5,942 RMB/ton; on July 30, it was 6,078.67 RMB/ton, a 2.3% increase from the beginning of the month.

Styrene overseas market: On July 30, the closing price of styrene market in Asia increased by $5/ton, closing at $900-905/ton FOB Korea and $910-915/ton CFR China.

Future outlook:

As of July 31, The fundamentals of the styrene market were weak and difficult to change. The commissioning of new plants in August may further suppress prices. In the absence of significant changes in the macro environment, the styrene market is expected to operate weakly in the short term.

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