This week, the styrene market experienced a wide decline, with an average price of 11300 yuan/ton on November 2nd and 10280 yuan/ton on November 6th, a decrease of 9.03% during the cycle and a year-on-year increase of 52.93%.
Macro: On November 5th, international crude oil futures closed higher. The settlement price of the December WTI crude oil futures contract in the United States was $90.52 per barrel, an increase of $2.40 or 2.7%. The settlement price of Brent crude oil futures for January was $98.29 per barrel, an increase of $3.67 or 3.9%.
Cost aspect: The price of pure benzene has dropped significantly. Oil prices are dominated by the US Iran situation, with the Democratic Party winning control of Congress and expectations of easing geopolitical tensions in the Middle East. As a result, international oil prices have dropped significantly, and pure benzene has been greatly affected by this. Entering November, some maintenance devices will return, and supply expectations will increase; From the demand side, with the decrease in raw material prices, the recovery of downstream profits, the increase in production, and the rebound after the drop in oil prices, it is expected that the market for pure benzene will stabilize in the short term.
Supply and demand side: Recently, the restart and maintenance of some styrene maintenance units have coexisted, resulting in overall tight supply of goods and low port inventory. From the demand side, downstream resistance to high priced raw materials is evident. After the price drops, downstream profits are released and production slightly rebounds, but overall support is insufficient.
Styrene external market: On November 5th, the closing price of styrene in the Asian region fell by $60/ton, and the FOB closing price in South Korea was $1295-1305/ton. CFR China closing price ranges from $1235 to $1245 per ton.
Market forecast: The current styrene market is mainly affected by fluctuations in crude oil, with low inventory levels, continuous destocking at ports, and weak supply and demand. It is expected that the styrene market will consolidate and operate after a short-term decline.
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