SunSirs: The Styrene Market Experienced Wide Rise in March

Market Overview

According to the SunSirs Commodity Analysis System, the styrene market experienced a substantial surge in March. The average price stood at 7,636 RMB/ton at the beginning of the month and rose to 10,560 RMB/ton by month-end, marking a monthly increase of 38.29%. The styrene market in March was significantly influenced by macroeconomic factors. At the start of the month, military conflicts in the Middle East disrupted oil and gas production and supply, causing international crude oil prices to skyrocket; consequently, major refineries repeatedly raised their posted prices for the primary feedstock—benzene—driving up styrene prices in tandem. Meanwhile, March saw a mix of plant maintenance shutdowns and restarts within the styrene sector, resulting in a slight contraction in overall supply. Although downstream industries had largely resumed operations, the high cost environment limited the actual growth in demand.

Market analysis

On March 30, international crude oil futures continued to rise. The settlement price for the May contract of U.S. WTI crude oil futures stood at $102.88 per barrel, up $3.24, or 3.3%. The settlement price for the June contract of Brent crude oil futures stood at $107.39 per barrel, up $2.07, or 2.0%.

Cost Perspective: In March, the benzene market experienced sharp fluctuations, characterized by rapid surges followed by steep declines. Influenced by geopolitical tensions, prices decoupled from fundamental market conditions, and overall market sentiment exerted a significant impact. Looking ahead, refineries—concerned about the stability of raw material supplies—have initiated defensive production cuts. As market participants closely monitor transit conditions through the Strait of Hormuz, the benzene market is expected to remain resilient in the short term, showing a greater propensity to rise than to fall.

Styrene (International Markets): On March 30, closing prices in the Asian styrene market rose by $25/ton, settling at $1,420–$1,430/ton FOB Korea and $1,400–$1,410/ton CFR China.

Market outlook

In April, the styrene market remains subject to uncertainty due to geopolitical tensions. From a fundamental perspective, April production is expected to decline month-on-month; concurrently, a recovery in downstream sectors is anticipated to drive increased demand. Consequently, the styrene market is highly likely to continue its upward trend in the short term.

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