Price trend:
According to the SunSirs' commodity analysis system, the styrene market fluctuated and declined in October. The average price at the beginning of the month was 7,120 RMB/ton, and the average price at the end of the month was 6,752 RMB/ton, a decrease of 5.17% within the month. The fundamentals of the styrene market were weak in October, with new plants coming online and other irregularities occurring simultaneously, resulting in an overall loose supply and high port inventories. The price of raw material benzene followed the trend of crude oil and declined weakly, with limited rebound. The operating rate of downstream EPS and PS industries rebounded slightly, providing some support, but there was no significant increase in orders from end-user sectors such as home appliances, resulting in limited market follow-up and low purchasing enthusiasm, with overall demand mainly driven by rigid demand.
Analysis review
On October 29, international crude oil futures closed higher. The settlement price for the December contract of US WTI crude oil futures was $60.48 per barrel, up $0.33 or 0.5%. The settlement price for the December contract of Brent crude oil futures was $64.92 per barrel, up $0.52 or 0.8%.
On the cost side: The benzene market fluctuated and declined in October. On the supply side, port inventories remained high, coupled with the recovery of domestic plant operating rates, resulting in continued supply pressure. On the demand side, downstream industries such as styrene and caprolactam showed weak purchasing intentions for raw material benzene, making it difficult to effectively boost benzene prices. Crude oil prices declined due to the combined effects of macroeconomic risks and a loose fundamental environment, further dragging down benzene prices.
Styrene international market: On October 29, the closing price of styrene in the Asian market rose by $5/ton, with closing prices at $785-795/ton FOB Korea and $795-805/ton CFR China.
Market Forecast:
As of October 30, styrene prices fell to a low point, downstream profits rose slightly, and operating rates had increased somewhat, but the overall impact on styrene prices was limited. In the short term, the supply and demand situation for styrene remains weak, and the macroeconomic environment is unlikely to change significantly. The styrene market is expected to decline rather than rise in the short term.
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