The Styrene Market Trended Upward Last Week (July 6-10)

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Prices trend

According to the Commodity Analysis System of SunSirs, the styrene market halted its decline and rose last week; the average price of styrene was 7,380 RMB/ton on July 6 and 7,810 RMB/ton on July 10, marking a 5.83% increase over the period and a 1.24% year-on-year decline.

Market analysis

Macroeconomic perspective: International crude oil futures closed reduce on July 9. The settlement price to the August contract of U.S. WTI crude oil futures was $72.08 per barrel, down $1.44 (2.0%). The settlement price to the September contract of Brent crude oil futures was $76.30 per barrel, down $1.72 (2.2%).

Cost perspective: Amid fluctuating Middle East tensions and rising crude oil prices, the operating rate to benzene fell to a historic low; tight supply drove a strong upward direction in benzene prices. Downstream operating rates faced pressure as activity declined and some downstream sectors operated at a loss. Overall, with strong cost support and expectations of increased exports, the benzene market is projected to maintain a firm direction in July.

Supply and Demand: Due to low profit margins, some styrene production units have reduced output or delayed restarts. Current supply is relatively ample. Operating rates to downstream "3S" sectors (ABS, PS, EPS) remain between 45% and 60%; overall operating levels are low, and demand support is insufficient.

External Styrene Market: On July 9, Asian styrene market closing prices rose by $2/tonne. The FOB Korea closing price was $997-$1,007/tonne, and the CFR China closing price was $1,012-$1,022/tonne.

Market Outlook:

Currently, demand in the styrene market is driven by immediate needs; purchasing activity has improved, leading to better transaction volumes. Coupled with expectations of tightening supply, market fundamentals have strengthened, suggesting a direction of evaporative environment with an upward bias to styrene in the near term.

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