This week, the styrene market stopped falling and rose. On July 6th, the average price of styrene was 7380 yuan/ton, and on July 10th, the average price of styrene was 7810 yuan/ton, an increase of 5.83% during the cycle and a decrease of 1.24% year-on-year.

Macro: On July 9th, international crude oil futures closed lower. The settlement price of the August WTI crude oil futures contract in the United States was $72.08 per barrel, a decrease of $1.44 or 2.0%. The settlement price of Brent crude oil futures for September was $76.30 per barrel, a decrease of $1.72 or 2.2%.
On the cost side: The Middle East conflict has been fluctuating throughout the week, with crude oil prices rising and pure benzene production rates falling to a historic low. Supply is tight, leading to a strong upward trend in pure benzene prices. Downstream production has declined, with some downstream areas experiencing a downturn, resulting in pressure on production rates. Overall, with strong cost support and expectations of increased exports, it is expected that the pure benzene market will show a strong trend in July.
Supply and demand side: Styrene is affected by low profits, resulting in reduced production or delayed restart of some facilities. The current supply is relatively loose. Downstream 3S production remains between 45% and 60%, with overall low production and insufficient demand support.
Styrene external market: On July 9th, the closing price of styrene in the Asian region rose by $2/ton, and the FOB closing price in South Korea was $997-1007/ton. CFR China closing price ranges from $1012 to $1022 per ton.
Market forecast: Currently, the demand side of the styrene market enters the market on demand, the purchasing atmosphere has improved, and transactions have improved. In addition to the expectation of tightening on the supply side, the fundamentals have been boosted and strengthened, and it is expected that the styrene market will experience strong fluctuations in the short term.