SunSirs: Styrene Market Weakens This Week (May 11–15)

According to SunSirs' Commodity Analysis System, the styrene market continued its downward trend this week. The average price stood at 9,560 RMB/ton at the beginning of the week and 9,300 RMB/ton at the end of the week, marking a weekly decline of 2.72%.

Macroeconomic Front: On May 14, international crude oil futures closed nearly flat. The settlement price for the June contract of U.S. WTI crude oil futures stood at $101.17 per barrel, marking an increase of $0.15, or 0.2%. The settlement price for the July contract of Brent crude oil futures was $105.72 per barrel, up $0.09, or 0.1%.

Cost Front: This week, the market for benzene trended downward amidst weakness. Supply-demand expectations for benzene remain generally tight, and port inventories continue to decline. Currently, significant divergences persist between the U.S. and Iran regarding the content of their negotiations; consequently, geopolitical risks remain volatile. While short-term strength in oil prices provides some support for benzene, upward momentum is being constrained by sluggish demand. Market participants should closely monitor developments in the U.S.-Iran situation.

Supply and Demand: Zhenhai Lyondell’s Phase I unit (600,000 tons) is scheduled for a shutdown from May 25 to June 15, while the Phase II styrene unit (600,000 tons) remains offline. Several production units have reduced operating rates, leading to a further widening of losses within the styrene industry. Downstream, the overall operating rates of the "3S" sectors have declined slightly, and market sentiment remains bearish.

Market Outlook:

The international geopolitical landscape remains unclear, and oil prices continue to fluctuate at elevated levels. In the short term, styrene prices are expected to track the high-level volatility of feedstock costs; market participants should closely monitor geopolitical developments and changes in plant operations.

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