SunSirs: Styrene Prices Fall Slightly This Week (August 11-15)

Price trend

According to the SunSirs’ Commodity Analysis System, the styrene market fluctuates and falls this week, with the average price at the beginning of the week being 7,604 RMB/ton and the average price at the weekend being 7,596 RMB/ton, a weekly decline of 0.11%.

Analysis review

News: On August 14, international crude oil futures rose. The September contract for U.S. WTI crude oil futures settled at $63.96 per barrel, up $1.31, or 2.1%. The October contract for Brent crude oil futures settled at $66.84 per barrel, up $1.21, or 1.8%. Expectations of a Federal Reserve interest rate cut were stimulating oil demand.

Cost: The benzene market sees a slight increase this week. Tangshan Xuyang's production facility restarted during the week, increasing production month-over-month. However, Jingbo Starry's export schedule was delayed, resulting in a smaller-than-expected increase in market supply. The average price at the start of the week was 6,142 RMB/ton, and by the end of the week it averages 6,235 RMB/ton, a 1.51% increase.

Supply and Demand: This week, styrene plant production reaches 369,100 tons, a 2.76% increase. Plant capacity utilization is 78.18%, a 0.45% increase from the previous month. The restart of a plant in North China, the increase in output from a new plant in Shandong, and the return to normal operation of a plant in South China contributes to overall production growth. On the demand side, operating rates at key downstream 3S plants remains at a year-low, contributing to weak demand.

Styrene overseas market: On August 14, the closing price of the styrene market in Asia fell by $5/ton, closing at $850-890/ton FOB Korea and $890-900/ton CFR China.

Future outlook:

The current styrene market is facing limited fundamental drivers, with supply expected to increase while demand remains weak. Without significant macroeconomic changes, the styrene market is expected to remain weak in the short term.

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