According to the commodity analysis system of Shengyi Society, the styrene market fluctuated and fell in August, with an average price of 7646 yuan/ton at the beginning of the month and 7550 yuan/ton at the end of the month, a decrease of 1.26% during the month. At the beginning of the month, due to the restart of a unit in Northeast China, a small amount of production was added to a new unit in Shandong, and some units in East and South China had their loads adjusted. The factory’s capacity utilization rate dropped to 77.73%, a decrease of 1.19% compared to the previous month. With supply side support, styrene saw a slight increase. The profit of styrene is still acceptable, and subsequently some units were restarted, adding new production capacity and increasing output. The operating rates of downstream and downstream industries have fluctuated, with high EPS inventory and a significant decrease in operating rates during the off-season of demand. The ABS and PS industries have seen a slight increase in production, with an overall trend of decreasing demand. Under weak fundamentals, the styrene market fluctuated and fell in August.
On August 28th, international crude oil futures closed higher. The settlement price of the October WTI crude oil futures contract in the United States was $64.60 per barrel, an increase of $0.47 or 0.7%. The settlement price of Brent crude oil futures for November was $67.98 per barrel, an increase of $0.54 or 0.8%.
Cost aspect: Pure benzene: The pure benzene market fluctuated and rose in August, influenced by its own supply and demand and macro privacy. The average price of pure benzene at the beginning of the month was 6075 yuan/ton, and the average price at the end of the month was 6154 yuan/ton, with a monthly increase of 1.28%.
Styrene external market: On August 28th, the closing prices of the styrene market in Asia remained stable, with closing prices of $870-875/ton FOB Korea and $880-885/ton CFR China.
Market forecast: The current fundamentals of the styrene market are weak and are expected to improve in the future. There are maintenance plans for multiple units in September, and the supply side is expected to strengthen. At the same time, the chemical market is expected to improve in September, and the demand side is expected to increase. It is expected that the styrene market will have some support in the future, and the price trend will be strong.