1、 Price trend
According to the monitoring of the bulk data of the business agency, the mainstream domestic styrene price rose first and then decreased slightly this week, slightly higher than last Friday. On Friday (July 3), the price of sample enterprises of the business agency was 5366.67 yuan / ton, and this Friday (July 10) was 5400 yuan / ton, an increase of 0.62. The price was 39.78% lower than the same period last year.
2、 Market analysis
This week, the styrene market price rose first and then decreased slightly, slightly higher than last Friday. On July 6, East China styrene closed at 5400-5500 yuan / ton, and on July 10, it was 5350-5450 yuan / ton, down by 50 yuan / ton. The above is Zhangjiagang export price. On July 6, South China styrene closed at 5600-5650 yuan / ton, and on July 10, 5550-5600 yuan / ton, falling by 50 yuan / ton, and the above-mentioned factories delivered to the price. In general, styrene showed a horizontal finishing this week, the overall situation of a small decline.
In terms of raw materials, crude oil remained stable during the week, and the price of pure benzene rose slightly at the beginning of the week. Due to the sharp rise in the stock market, the spot price on the spot was firm. However, due to no substantial improvement in demand, the market trading atmosphere turned to be cautious and wait-and-see, and the price stabilized in the later stage. As of Friday (July 10), the mainstream quotation of pure benzene was 3150.00 yuan / ton, up 30 yuan / ton or 0.96% from 3120.00 yuan / ton on Friday (July 3).
In terms of ethylene, due to the maintenance of ethylene plants in Asia, the supply of ethylene increased, and the price dropped significantly. As of Friday (July 10), the mainstream ethylene quotation was 763.50 yuan / ton, down 21.75 yuan / ton or 2.77% from 785.25 yuan / ton on Friday (July 3).
In terms of inventory, the total inventory in East China decreased slightly this week. The total inventory in East China this week was 370200 tons, down 3.25% from 382600 tons last week. But inventories are still high. In the short term, the oversupply has not changed. In terms of domestic styrene, styrene was restarted and increased in July, some enterprises’ inventory increased slightly, and the overall output was basically the same as last week. The average domestic styrene operating rate was 82.2% last week and 81.99% this week, down 0.21%.
On the downstream side, the overall steady decline of styrene downstream this week, still maintain considerable production and marketing profits. In the PS market, as of Friday (July 10), the mainstream ex factory price of PS in East China was 8066.67 yuan / ton, down 33.33 yuan / ton or 0.41% from 8100.00 yuan / ton on Friday (July 3).
In the EPS market, as of Friday (July 10), the mainstream ex factory price of EPS in East China was 8100.00 yuan / ton, which was stable compared with last Friday (July 3). The supply of EPS market in East China and South China is still tight. Some factories restrict orders. The supply in the northern market has eased slightly. Some traders replenish goods across regions. Some downstream companies enter the off-season season. In addition, the cost support is insufficient. Downstream businesses are cautious in buying, and the overall trading remains rigid.
In ABS market, as of Friday (July 5), the mainstream ex factory quotation of ABS in Zhejiang was 13250.00 yuan / ton, which was stable compared with last Friday (July 3). In July, the off-season of home appliance production has entered, and the operating rate of some home appliance factories has decreased compared with that of last month, and the demand for ABS procurement has decreased, while the supply side has accumulated inventory. Although air conditioning decreased by 3.57% month on month in July, it increased by 30.65% year-on-year, and the demand was still supported.
3、 Future prospects
In July, the import volume of styrene decreased on a month on month basis, but the overall supply was still surplus. The price of pure benzene and ethylene in the upstream weakened, the support for styrene weakened, and the demand for styrene from downstream EPS weakened, mainly to maintain rigid demand. Styrene spot sales pressure is still large, it is expected that styrene will be mainly horizontal finishing next week. The market needs to pay close attention to the trend of crude oil price.