[Industry Reports]：Styrene market rebounded and climbed, and the market outlook was clear.

this year, in the face of the "epic" US and European inflation in the United States and Europe, the "interest rate hike eagle" has had a profound impact on global commodity prices and exacerbated their volatility. The styrene market is also difficult to fall. Since September, the domestic styrene price has been rising strongly, and the cost of crude oil still has some support. Although crude oil fluctuates widely, the geopolitics are complicated, and Russian sanctions continue. Under the background of high oil prices, the driving force of styrene cost is not as good as in the first half of the year, but it maintains a certain driving force.

entered Jinjiu, styrene market demand recovered moderately and market volatility was strong. After a wave of decline in August and a phased low approaching 8180 yuan, styrene gradually stabilized its rebound trend. A wave of repair rebounds began at the end of August and the beginning of September. Styrene prices began to rise as prices were cyclically oversold and peak season demand was expected to improve month by month. By mid-September, the price of styrene in East China had risen to around 9800-9900. Port inventories are low, domestic peak season demand is still positive support, offsetting overseas negative factors, futures rebound to push domestic spot prices back to high.

The international crude oil NYMEX near September 7
has hit a new low of US $81.94 per barrel since late January this year. The prospect of global economic recession continues to put pressure on the market. In addition, Saudi Arabia's largest crude oil exporter's output and exports rose, U.S. exports hit a new high, and Iran's nuclear agreement restarted negotiations and other factors are also detrimental to the oil market. However, the decline in oil prices was limited and global supply remained tight in the short term, before crude oil rebounded in the shock and rose again. Market concerns about the geopolitical situation still support oil prices, while short-term oil prices tend to fluctuate.

pure benzene has recently fluctuated with the trend of crude oil and is close to 8000 resistance. The output of petroleum benzene has slightly rebounded, while the output of hydrogen benzene has slightly decreased. In July, the import of pure benzene has dropped sharply. In July, the import of pure benzene has 208,700 tons, in June, the import of 107,400 tons in July, reaching 100,000 tons. However, in August, the import of 259,000 tons, the price difference between pure benzene and oil, the profit of pure benzene is good, and the overall pure benzene is still strong. Port stocks may not be obvious. However, the subsequent import of pure benzene is expected to increase. With the reduction of arbitrage space in Europe and the United States, South Korea flows to the United States, and Asian markets may face pressure.

in styrene inventory, last week, East China's main port inventory of 45,500 tons, the last three years at a low level, the end demand is expected to be moderate, ABS and PS operating rate increased month-on-month, EPS in terms of operating rate, operating rate decreased month-on-month. East China Port expects normal delivery before the end of the month, styrene inventory is difficult to accumulate significantly. According to the customs import and export data in July, the import volume of styrene in August was 64,900 tons and the export volume was 48,100 tons. Imports rebounded month-on-month, while exports fell month-on-month. According to reports, due to poor terminal demand, export market negotiations are relatively flat. The subsequent export situation is expected to be general, showing a downward trend month-on-month.

The profit of
styrene has become positive with the rebound of prices, the raw material pure benzene has declined, the relative growth of ethylene is not large, and the profits of styrene production enterprises have improved. Some devices consider restarting after maintenance. The load of existing equipment has increased slightly, but there are still equipment plans for maintenance, and the overall industrial load is close to 75-76%. This year, due to profit fluctuations, the start-up load of styrene production units is lower than the historical same period.

in the downstream operating rate, with the progress of the peak season, the demand for seasonal peak season increases month by month. While market participants are mostly cautious about demand, they can still maintain rigid demand. Although it is expected that demand orders will be difficult to have greater support, the improvement is phased. PS and EPS operating rates rose month-on-month, close to or slightly stronger than last year. The recent industrial operating rate of ABS is 85%, showing an upward trend. Overall, terminal demand improved steadily and slightly. Under the short-term mood improvement and peak season expectations, there will be stock before the National Day. Styrene tends to fluctuate and rebound in the short term, and subsequent demand still needs to continue to cooperate. However, most market participants have weak expectations for demand after 10 months.