SunSirs: Styrene Market Fluctuated Downward This Week (May 4–8)

rice Trends

According to the SunSirs Commodity Analysis System, the styrene market experienced a volatile decline this week. The average price stood at 9,920 RMB/ton at the beginning of the week and 9,756 RMB/ton at the end of the week, marking a weekly decrease of 1.65%.

Market Analysis

Macroeconomic Factors: On May 7, international crude oil futures closed lower. The settlement price for the July contract of U.S. WTI crude oil futures stood at $94.81 per barrel, down $0.27, or 0.3%. The settlement price for the July contract of Brent crude oil futures was $100.06 per barrel, a decline of $1.21, or 1.2%.

Cost Factors: Geopolitical tensions have eased somewhat, placing downward pressure on oil prices; consequently, benzene prices have trended lower, dragged down by the weakness in crude oil markets. In the short term, although some downstream sectors are exhibiting negative feedback, the supply-demand balance for benzene remains relatively tight; with port inventories continuing to decline, prices retain underlying support.

Supply and Demand: Influenced by the May Day holiday, demand for styrene has been sluggish. Following the holiday, easing geopolitical tensions in the Middle East led to lower crude oil prices; under this pressure, styrene futures trended downward amidst volatile trading. Consequently, losses within the styrene industry have widened, prompting an increase in plant maintenance shutdowns; however, spot market supplies remain ample. Downstream sectors continue to show resistance to high prices, resulting in limited follow-through on purchases and a generally subdued trading atmosphere. While demand from the "3S" downstream sectors remains stable, market participants hold a relatively pessimistic outlook regarding future demand prospects.

Market outlook

In the short term, easing geopolitical tensions are weighing on international oil prices. Looking ahead, while some enterprises have scheduled maintenance plans for styrene, demand support remains moderate; consequently, the upside potential from short-term bullish factors is limited, and the likelihood of a decline in the styrene market is expected to increase.

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