Raw material shock, HIPS market price stabilization after rising, wait and see

1、 Price trend

According to the business news agency’s block data list, on May 12, the average price of domestic hips was 14000 yuan / ton, which was flat compared with the previous day, up 8.3% compared with the beginning of the month and 10.01% compared with the same period last year.

2、 Market analysis

After the May Day holiday, hips began to rise, and the market continued to rise. The price of styrene rose by more than 5% after the festival, and then recovered slightly. The price was still at a high level, which supported the price rise of hips. However, the demand side followed up generally, the high price transaction was not smooth, the downstream heart had resistance, the receiving capacity was limited, and only just needed to maintain the purchase. The overall trading atmosphere of the market was relatively light, so there was not enough momentum for the continued rise. Most of the companies waited and saw, and hips was stable after the rise. Up to now, the price of hips is about 13650-14100 yuan / ton, Guangzhou Petrochemical 660 reference price is 14000 yuan / ton, Zhanjiang Zhongmei 990 reference price is 13900 yuan / ton, Shanghai Secco 622 reference price is 14100 yuan / ton, CITIC Guoan 688 reference price is 13650 yuan / ton, the overall market price has risen.

International crude oil market: on May 11, international oil prices closed higher, with the settlement price of the main contract in the US WTI crude oil futures market at US $65.28/barrel, up 0.36 US dollars or 0.6%. The settlement price of the main contract in Brent crude oil futures market was US $68.55/barrel, up US $0.23 or 0.3%. The main reason is that the market’s concern about the gasoline shortage caused by the closure of the largest fuel pipeline system in the United States after the cyber attack has not dissipated, reversing the market’s downward trend of more than 1% due to the severe impact of the epidemic.

In terms of raw materials, the trading atmosphere of Asian styrene US dollar market on November 11 was light, and the people in the market were in a strong wait-and-see mood. There were few offers, only a few paper goods were heard. CFR China, may paper 1340. CFR China closed at 1330-1390, with an average price down 20; FOB Korea closed at 1310-1370, with an average price down 20%. Unit: USD / T.

3、 Future forecast

According to the business association, the rise of raw material styrene after the festival supported the rise of hips trend, but the demand side followed up generally, and the power of continuous rise was insufficient, and hips became stable after the rise. At present, the transaction of high price hips is negative, there is pressure on the delivery of goods, and the firm offer has the performance of yielding profits. It is expected that hips will decline steadily with the callback of raw materials in the short term.