SunSirs: The Styrene Market in Shandong Region Has Slightly Increased This Week

https://www.chemnet.com   Jun 14,2024 SunSirs

Price trend

According to the commodity market analysis system of SunSirs, the price of styrene in Shandong was 9,558.33 RMB/ton on June 7th, and 9,591.67 RMB/ton on June 13th, an increase of 0.35%. The price has increased by 27.75% compared to last year.

Analysis review

The market price of styrene has slightly increased this week. From the above chart, it can be seen that the price of styrene has mainly fluctuated and increased in the past three months, with a slight increase trend in the recent market. The main reason for the increase was the continuous rise in international oil prices, which has driven the upward trend of pure benzene market and provided strong cost support. However, the losses in the styrene industry continued to expand, and downstream industries were more resistant to high prices, suppressing the increase in the styrene market.

Cost side

Recently, pure benzene has continued to rise overall. As of 13th, the pure benzene port warehouse was at a low level, and the demand side in the East China market was actively stocking up, with spot traders buying up and entering the market. Most refineries in Shandong continued to raise their prices. After the price increase, market buying continued and transactions were better. As of June 13th, the mainstream spot price of pure benzene in the Shandong market was 9,442 RMB/ton. Compared to the beginning of the year, pure benzene was temporarily still in the high range, which can provide some cost support for styrene.

Supply side

In June, there are many maintenances of the styrene unit. On the 12th, the 600,000 ton/year styrene unit of Zhejiang Petrochemical was shut down for two weeks for maintenance. On the 14th, the 80,000 ton/year styrene unit of Huaxing Petrochemical will be shut down for maintenance, and the restart time is uncertain. The 500,000 ton/year styrene plant of Gulf Chemical is scheduled to be shut down for maintenance for 45 days in July. Zibo Junchen, Satellite Petrochemical, Xinpu Chemical, and Anhui Jiaxi Styrene Units reduced their load to 70% of operation. The inventory of styrene remained low, and domestic supply remained at a relatively low level, which was beneficial for the styrene market. Under the profit situation, the enthusiasm of production enterprises to start production was limited, and it is expected that there will be little supply pressure in June.

Demand side

Recently, the three major downstream markets of styrene have experienced two stabilizations and one decline. Among them, domestic ABS prices have fallen. ABS downstream had no centralized procurement plan, and supply pressure was gradually increasing. The transaction volume in the East China market was weak, and the terminal has entered a low demand season. Overall, it is expected that the ABS market will continue to decline in the short term. The PS and EPS market was fluctuating and consolidating. The mainstream price of GPPS (polyphenylene sulfide) in the East China market was 10,250-11,400 RMB/ton, and the mainstream price of HIPS (polystyrene) was 11,050-12,200 RMB/ton. EPS cost support was average, coupled with downstream high price resistance, production and digestion of early finished product inventory were the main factors, and the market had a clear wait-and-see atmosphere, resulting in weak new order transactions.

Market outlook

According to the styrene data analyst from SunSirs, there were more shutdowns and load reductions in styrene units in June, leading to a decrease in supply expectations. The cost side pure benzene market strongly supported, and downstream demand is expected to continue to increase. SunSirs’ analysts predict that the styrene market will mainly rise.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.

 Print  |    add to Favorites  |    Close