According to the commodity market analysis system of Business Society, the price of styrene in Shandong was 9683.33 yuan/ton on June 1st, and 9413.33 yuan/ton on June 27th, a decrease of 2.79% within the month. The current price has increased by 28.95% year-on-year.

styrene

In June, the market price of styrene first fell and then rose. From the above chart, it can be seen that the price of styrene has been mainly fluctuating in the past three months, with a greater decline than an increase in the market this month. The reason for the decline is the fluctuation of international oil prices and poor cost support, while the styrene market has risen to a relatively high level. Spot demand is mainly in demand, and downstream demand is slightly resistant to high prices, resulting in a slight decline in the styrene market.

Cost side

In June, pure benzene continued to rise overall, with prices reaching high levels. At present, the inventory of pure benzene in the port has dropped to around 20000 tons, which is at a low level in the same period of five years, and spot trading is active. Most refineries in Shandong continue to raise their prices. After the price increase, market buying continued and transactions were better. As of June 27th, the mainstream spot price of pure benzene in the Shandong market was 9364.67 yuan/ton, an increase of 2.62% compared to 9125.50 at the beginning of the month. The high price of pure benzene has compressed the profit margin of styrene.

Supply side

In June, there were many inspections of the styrene unit. On the 12th, the 600000 ton/year styrene unit of Zhejiang Petrochemical was shut down for two weeks for maintenance. On the 14th, the 80000 ton/year styrene unit of Huaxing Petrochemical was shut down for maintenance, and the restart time is uncertain. The 500000 ton/year styrene plant of Gulf Chemical is scheduled to be shut down for maintenance for 45 days in July. Under the current profit situation, the enthusiasm of production enterprises to start production is limited, and it is expected that there will be little supply pressure in July, with a decrease in production expected.

Demand side

In June, the three major downstream markets of styrene saw one rise and two falls. EPS rose, downstream demand in the north recovered well, demand for home appliance packaging increased, inventory rapidly decreased, and the market slightly rose. Domestic ABS prices are weak. From a fundamental perspective, the center of gravity of the upstream three materials of ABS is falling, which weakens the cost support for ABS. ABS currently has high inventory levels. The demand side has weak demand, and the manufacturer’s shipment situation is poor. In summary, it is expected that the ABS market may experience a weak downward trend in the short term. The overall production of PS has decreased compared to the previous month, but it is still at a high level. Inventory is showing a slight growth trend, and the PS market transactions are weak. Merchants are offering discounts to sell, and it is expected that the short-term PS price may fluctuate weakly.

According to the styrene data analyst from Business Society, the current cost side pure benzene inventory is low, prices are strong, and non integrated styrene factories are in a loss making state. The unit load is decreasing, and there is an expectation of a decrease in styrene supply. Downstream multi-dimensional purchases are in demand, and Business Society analysts expect a slight increase in the styrene market.