SunSirs: The Styrene Market Traded Within a Range Last Week (November 17-21)

Price trend

According to the commodity analysis system of SunSirs, the styrene market fluctuated last week. The average price at the beginning of the week was 6,720 RMB/ton, and the average price at the end of the week was 6,620 RMB/ton, a decrease of 1.19% within the week.

Market Analysis

News: On November 20, international crude oil futures closed lower. The settlement price for the January contract of US WTI crude oil futures was $59.00 per barrel, down $0.25 or 0.4%. The settlement price for the February contract of Brent crude oil futures was $62.80 per barrel, down $0.20 or 0.3%.

Cost side: Last week, benzene prices fluctuated at low levels. Rising international prices drove up domestic prices, but were quickly dragged down by weak benzene fundamentals, and prices soon fell back. Furthermore, with many imports still arriving and import expectations high for November, the benzene market was more likely to fall than rise.

Supply and Demand: As of November 20, total styrene production was 342,900 tons, with an operating rate of 68.95%. Sinochem Quanzhou's 450,000-ton/year plant was shut down early for maintenance due to unforeseen circumstances, resulting in an unplanned reduction in supply. On the demand side, overseas demand saw a slight boost, but its sustainability was limited. Domestic demand was in the off-season, and downstream 3S operations remained at their original levels, limiting the demand-side stimulus.

Styrene international market: On November 20, the closing price of styrene in the Asian market rose by $5/ton, with closing prices at $800-805/ton FOB Korea and $810-815/ton CFR China.

Market outlook

As of November 21, the styrene market saw a recovery in profits, but some factory maintenance shutdowns might be delayed. Coupled with the commissioning of new units, the supply side was gradually weakening, and the styrene market is expected to fluctuate and consolidate in the short term.

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