SunSirs: The Styrene Market Fluctuated and Fell This Week (September 1-5)

Price trend

According to the SunSirs commodity analysis system, the styrene market fluctuated and fell this week, with the average price at the beginning of the week being 7,510 RMB/ton and the average price at the weekend being 7,486 RMB/ton, a weekly decline of 0.32%.

Analysis review

News: On September 4, international crude oil futures closed lower. The October contract for WTI crude oil futures settled at $63.48 per barrel, down $0.49, or 0.8%. The November contract for Brent crude oil futures settled at $66.99 per barrel, down $0.61, or 0.9%.

Cost: Benzene prices fluctuated downward this week, averaging 5,975 RMB/ton at the start of the week and 5,967 RMB/ton over the weekend, a 0.12% decrease. Recent destocking at ports has eased import pressure, coupled with domestic maintenance and increased downstream demand. Supply and demand are expected to improve seasonally in the third quarter.

Supply and demand: The styrene industry is facing losses, with high operating rates and supply remaining high, and port inventory levels running high. As downstream EPS/PS industries are squeezed by profit, the industry's operating rates have declined.

Styrene overseas market: On September 4, the closing price of styrene market in Asia fell by $5/ton, closing at $850-855/ton FOB Korea and $860-865/ton CFR China.

Market outlook

The current styrene market fundamentals are weak. If plant maintenance plans proceed as planned in September and October, supply is expected to improve. Without significant macroeconomic changes, the styrene market is expected to be volatile and weaker in the short term.

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