Since June, the decline in the domestic styrene market has gradually intensified. On June 1st, the average price of styrene was 8844 yuan/ton, and on June 18th, the average price of styrene was 7940 yuan/ton, a decrease of 10.22% during the period and a year-on-year decrease of 3.52%.
Macro: On June 17th, international crude oil futures closed higher. The settlement price of the July WTI crude oil futures contract in the United States was $76.79 per barrel, an increase of $0.74 or 0.98%. The settlement price of Brent crude oil futures for August was $79.55 per barrel, an increase of $0.59 or 0.75%.
Cost aspect: The raw material pure benzene market fluctuates with the fluctuation of crude oil prices. Currently, the United States and Iran are about to reach a peace agreement, the Strait of Hormuz may be fully opened, and overseas market maintenance facilities have returned, easing the tight supply situation. The domestic supply and demand of pure benzene remain tight and balanced, with weak demand, and a short-term trend is expected.
Supply and demand side: In June, the styrene plant will undergo maintenance and restart simultaneously. Overall, the restart of the plant will be more concentrated in late June, and the supply will increase. The price of styrene has fallen, downstream profits have recovered, but downstream inventory release is slow, and procurement is mainly driven by essential needs, with limited demand pull.
Styrene external market: On June 17th, the closing price of styrene in the Asian region fell by $20/ton, and the FOB closing price in South Korea was $1050-1060/ton. CFR China closing price is 1035-1045 USD/ton.
Market forecast: With a decline in geopolitical premiums and weak fundamentals, it is expected that the styrene market will face difficulties in rising in the short term, and the market will mainly experience weak fluctuations.
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