This week, the styrene market continued its upward trend, with an average price of 9900 yuan/ton on September 7th and 10610 yuan/ton on September 11th, representing a 7.17% increase during the cycle and a year-on-year increase of 43.49%.
Macro: On September 10th, international crude oil futures surged. The settlement price of the October WTI crude oil futures contract in the United States was $102.48 per barrel, an increase of $6.43 or 6.7%. The settlement price of Brent crude oil futures in November was $107.63 per barrel, an increase of $6.42 or 6.3%.
Cost wise: The price of pure benzene has risen sharply this week. Geopolitical risks continue to drive up crude oil prices, leading to a decline in port inventories of pure benzene and a continued shortage of subsequent arrivals. In addition, with the expected increase in demand for delivery due to the double festival, the focus of pure benzene negotiations continues to rise.
Supply and demand side: The peak of styrene maintenance has passed, and two sets of facilities in Shandong have restarted, with high operating rates fluctuating. The downstream three S have poor acceptance of high prices, are cautious in chasing high prices, and mainly focus on basic essential needs.
Styrene external market: On September 10th, the closing price of styrene in the Asian region rose by $48/ton, and the FOB closing price in South Korea was $1408-1418/ton. The closing price of CFR China is 1368-1378 US dollars per ton.
Market forecast: The main reason for this round of price increase is the fluctuation of crude oil, strong cost support, and the maintenance of positive exports. It is expected that the market will maintain a strong pattern, and the overall trend will mainly resonate with pure benzene.