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[Industry Reports]：Styrene: Insufficient price support, limited rise, and the possibility of falling

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Domestic styrene prices show a shock trend after rising. Last week, the spot high-end transaction in Jiangsu was 10150 yuan/ton, the low-end transaction was 9750 yuan/ton, and the high-end price difference was 400 yuan/ton. Crude oil prices dominated by styrene, and pure benzene remained firm. When the oil price was adjusted back, Styrene profits were compressed again, and the cost side continued to support it, and crude oil rebounded at the end of this week while rising. Downstream demand is general, fundamentals continue, under the influence of epidemic and production profits, domestic downstream factories are not well started, and it is difficult for supply and demand to boost styrene.

Supply end

at present, the start-up of domestic styrene factories is at a low level. Under the influence of production profits, most non-integrated factories are in the negative parking, partial integrated devices or overhaul, or faulty parking and load reduction, only in this way can the output not increase. Therefore, it is difficult to suppress the price of domestic styrene production, which also makes the fluctuation of production this week not obvious, while the recent negative decline of Lihuayi makes the weekly yield of styrene slightly lower. In the later period, as the output of some units recovers, the overall domestic styrene production will increase.

Demand side

the downstream demand has not changed much recently. Due to the recent negative impact of some manufacturers in EPS, the demand for styrene has decreased, but the demand of PS and ABS factories has increased. Therefore, overall, the recent three downstream demand reductions are very limited, and there is room for improvement in later requirements. However, at present, the epidemic in East China has a great impact, which may suppress the demand for styrene.

At present, the oil price has rebounded to a high level, and the rise is limited again. The price of pure benzene continues to be firm, but the sustainability of the short squeeze market is worrying, especially if the oil price is adjusted back, pure benzene may fall; Therefore, although the cost side still has support, there is a possibility of cost callback, and the cost support also decreases. The supply and demand side is maintained, and the output of styrene factories on the supply side is stable, with a slight increase. On the demand side, the epidemic continues in Jiangsu, and some EPS factories are affected by parking, PS is due to profit problems, some factories have the intention to stop and reduce the load. Therefore, this week, the price of styrene in China has limited rise and may fall. It is estimated that the spot price in Jiangsu market may be between 9700 and 10,000 yuan/ton.

Source: Guangzhou chemical trading center

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