According to the commodity analysis system of Shengyi Society, the styrene market saw a broad rise in March, with an average price of 7636 yuan/ton at the beginning of the month and 10560 yuan/ton at the end of the month, representing a 38.29% increase during the month. The styrene market was greatly affected by macro factors in March. At the beginning of the month, the Middle East war affected oil and gas production and supply, causing a sharp rise in international oil prices. The listing prices of the main refineries for pure benzene raw materials were raised multiple times, leading to an increase in styrene prices. At the same time, the maintenance and restart of the styrene plant in March coexisted, resulting in a slight reduction in overall supply and basic resumption of downstream work. Under high costs, the demand increment was limited.
On March 30th, international crude oil futures continued to rise. The settlement price of the May WTI crude oil futures contract in the United States was $102.88 per barrel, an increase of $3.24 or 3.3%. The settlement price of Brent crude oil futures in June was $107.39 per barrel, an increase of $2.07 or 2.0%.
On the cost side: The pure benzene market experienced a sharp rise and fall in March, influenced by the geopolitical situation, with prices deviating from fundamentals and a significant impact on market sentiment. In the future, refineries are concerned about the stability of raw material supply and have entered defensive production cuts. They are closely monitoring the passage of the Strait of Hormuz, and the short-term pure benzene market is prone to rise but difficult to fall.
Styrene external market: On March 30th, the closing price of the styrene market in Asia increased by $25/ton, with a closing price of $1420-1430/ton FOB Korea $1400-1410/ton CFR China.
Market forecast: The styrene market in April is still uncertain due to the geopolitical situation. From a fundamental perspective, the production in April may decrease compared to the previous month, while downstream recovery is expected and demand is expected to increase. It is expected that the styrene market will continue to rise in the short term.
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