1、 Price trend

According to the bulk data list of business society, the average price of domestic hips on May 25 was 12333.33 yuan / ton, down 0.27% from 12366.67 yuan / ton on Wednesday (18th) and 9.09% from the beginning of the month.

2、 Market analysis

Recently, the hips market has weakened and the price has fallen slightly. The raw material styrene fluctuated and fell. In addition, the demand side was always weak. Both the buyer and the seller were on the sidelines. The merchant’s quotation mostly followed the market, and the mentality was negative. Hips market is generally stable and fluctuates in a narrow range. So far, the ex factory price of hips is mostly about 11400-14100 yuan / ton, and the price of GPPS 525 is mostly 10200-11500 yuan / ton. The PS market fluctuates slightly during the week.

In the international crude oil market, on May 24, the international crude oil futures rose and fell, and the market was still high. U.S. WTI crude oil futures fell, and the settlement price of the main contract was US $109.77/barrel, down US $0.52 or 0.47%; Brent crude oil futures rose slightly, and the settlement price of the main contract was US $113.56/barrel, up US $0.14 or 0.12%. There was little change in market fundamentals. Under the background of the Fed’s interest rate hike, the future economic uncertainty increased, and the market’s concern about the demand outlook offset the expectation of oil supply shortage.

In terms of raw materials, on May 24, the reference price of styrene was 10241.67, an increase of 5.22% compared with May 1 (9733.33). The international crude oil market is expected to rise, the downstream demand is slightly insufficient, and the cost and pressure of styrene coexist. Generally speaking, if the raw material level rises next week, the styrene market will follow the rise.

3、 Future forecast

The business agency believes that the current cost level fluctuates and the downstream demand is weak. It is expected that the hips market will fall steadily in the short term.