SunSirs: Styrene Market Fluctuated Downward This Week (April 6-10)

Price trend

According to the SunSirs Commodity Analysis System, the styrene market experienced a volatile decline this week. The average price stood at 10,540 RMB/ton at the beginning of the week and 10,180 RMB/ton at the end of the week, marking a weekly decrease of 3.42%.

Market analysis

Macro Outlook: On April 9, international crude oil futures closed higher. The settlement price for the May contract of U.S. WTI crude oil futures stood at $97.87 per barrel, up $3.46, or 3.7%. The settlement price for the June contract of Brent crude oil futures stood at $95.92 per barrel, up $1.17, or 1.2%.

Cost Perspective: Amidst fluctuating geopolitical tensions in the Middle East, crude oil prices have rebounded following a decline; with the Strait of Hormuz once again closed and overseas benzene production facilities operating at reduced loads, benzene import volumes for April and May are projected to drop significantly. Consequently—driven by the influence of crude oil prices—benzene prices are expected to exhibit strong, volatile movements.

Supply and Demand: Few production units underwent maintenance this week, keeping supply stable. However, due to a sharp rise in the prices of raw materials—such as styrene—downstream sectors exhibited strong resistance to the high costs; consequently, the 3S industry continued to incur cash flow losses, leading to a decline in operating rates.

Styrene International Markets: On April 9, closing prices in the Asian styrene market rose by $30 per ton. The FOB Korea closing price stood at $1,370–$1,380 per ton, while the CFR China closing price was $1,340–$1,350 per ton.

Market outlook

In the short term, with Iran once again closing the Strait of Hormuz, geopolitical volatility is expected to persist until a final agreement is reached; consequently, oil prices are likely to maintain a high-level, volatile trading pattern, and styrene prices may track these fluctuations in the near term.

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