SunSirs: The Styrene Market Fluctuated Within a Narrow Range This Week (June 1-5)

Price Trend

According to the SunSirs commodity analysis system, the styrene market fluctuated within a narrow range this week. The average price was 8,844 RMB/ton at the beginning of the week and 8,850 RMB/ton at the weekend, marking a weekly increase of 0.07%.

Market analysis

Macroeconomic perspective: International crude oil futures closed lower on June 4. The settlement price for the July contract of U.S. WTI crude oil was $93.04 per barrel, down $2.98 (3.1%). The settlement price for the August contract of Brent crude oil was $93.04 per barrel, down $2.78 (2.8%).

Cost perspective: Benzene prices saw a slight rise this week. Geopolitical conflicts drove significant volatility in oil prices, causing chemical product prices to initially fall and then rebound. Meanwhile, port inventories continued to decline with limited incoming shipments expected, suggesting a continued trend of destocking; however, most market participants remain concerned about downstream demand. As benzene prices rose, traders predominantly sold at higher levels, limiting the momentum for further price increases.

Supply and demand: Some units undergoing maintenance have restarted, industry operating rates are gradually rising, and the supply of goods has increased. While raw material prices have fallen and downstream profit margins have recovered, weak downstream demand and cautious speculative buying are limiting any rebound in styrene prices.

Market Outlook:

Supply and demand for styrene are expected to remain tight in June, though the pace of inventory drawdown may slow, and fundamental drivers for the market remain limited. Oil price fluctuations—driven by geopolitical factors—will likely cause styrene prices to track with volatility; however, anticipated lower arrival volumes next week suggest a continued inventory drawdown, providing short-term price support.

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