Price trend

According to the SunSirs Commodity Analysis System, the styrene market continued to decline last week, with an average price of 7,020 RMB/ton at the beginning of the week and an average price of 6,900 RMB/ton at the weekend, a weekly drop of 1.71%.

Analysis review

News: On October 16, international crude oil futures closed lower. The December contract for U.S. WTI crude oil futures settled at $56.99 per barrel, down $0.85, or 1.5%. The December contract for Brent crude oil futures settled at $61.06 per barrel, down $0.85, or 1.4%.

Cost side: Last week, the benzene market fell weakly, the contradiction between supply and demand intensified, the domestic benzene inventory remained high, and the downstream industries such as phenol and aniline were generally in a loss-making state. Only caprolactam maintained rigid procurement supported by textile demand, and the weak fundamentals were difficult to change.

Supply and Demand: Last week, one plant each in Shandong, East China, and South China shut down, with some units experiencing minor load adjustments, leading to a decline in domestic production. Styrene port inventories in East China remained elevated at nearly 200,000 tons, compared to only around 40,000 tons in the same period last year. The inventories were at their highest level in nearly five years. Due to insufficient downstream 3S orders and ample spot supply in the market, overall corporate inventories remained elevated.

Styrene overseas market: On October 16, the closing price of styrene market in Asia fell by $2.5/ton, closing at US$790-795/ton FOB Korea and $800-805/ton CFR China.

Market outlook

Looking ahead, demand is gradually entering the off-season, leaving insufficient support. Furthermore, with new styrene production capacity imminent and pressure from accumulated inventory, the styrene market is expected to decline rather than rise in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.