Recently, the styrene futures market fluctuated upward. As of the close on July 6, the main contract EB2009 closed at 5757 yuan (ton price, the same below), an increase of 42 yuan, an increase of 0.73%.
From the spot point of view, the supply and demand of styrene market is stable, the main downstream is stable, the rigid demand is good, the high temperature is coming, the inventory storage fees of manufacturers are increasing, and the mainstream shipments are mainly.
In terms of supply, the Tianjin Zhongsha styrene plant is still in shutdown and is expected to restart in July; the restart of Ningbo Keyuan’s plant has been postponed to mid-July; Yanshan Petrochemical plans to overhaul in July; Yuhuang Chemical’s 250,000-ton/year plant is scheduled to start in June Stopped on the 18th; Xinyang Technology's installation restarted on June 20th. As of July 2, the operating rate of the styrene industry was 82.2%, down 1.2% from June 24, but the operating level was still at a high level.
In terms of inventory, on July 3, the total styrene inventory in Jiangsu mainstream reservoir area in East China was 384,000 tons. More goods will arrive at the port later, and styrene stocks are expected to remain high.
From the perspective of demand, the downstream factories have started to operate stably, and their demand for raw materials is acceptable. In terms of ABS, one production line in Haijiang, Shandong was shut down, and the rest of the equipment was operating normally. The industry has a relatively high operating rate. The downstream large-scale home appliance factories have stable demand, but with the increase in high temperature weather, the downstream factories' operating load will decrease and the demand for raw materials will decrease.
In terms of PS, Yangzi BASF and Hebei Baosheng have shut down their installations for overhaul, while the remaining enterprises are operating at a high load, but the inventory pressure is controllable. The pace of terminal receiving is slow, the market is hardly optimistic, and speculative demand is weakened. Small and medium-sized downstream factories can be purchased as they are used. Due to the off-season for plastics, PS demand is difficult to change.
In terms of EPS, corporate inventories are low and ex-factory prices are raised. Traders are entangled in their mentality, reluctant to sell, and they are waiting to rise. Downstream on-demand procurement is the main focus, and there is resistance to high prices.
In summary, supply is growing steadily, while consumption is steadily weakening. It is expected that the styrene futures market will not continue to rise in the later period.
