Styrene market weekly prices last week began to shake up mid-week, rising for the following reasons.

1. a boost in demand for short-coverage in the off-month market delivery.

2. international oil prices and commodity rebound.

By the 27th delivery atmosphere is basically over, the spot began to cool down, the actual downstream procurement demand is weak.

Last week, the total output of domestic ABS industry was 65.6 million tons, 0.04 million tons less than the previous week; the industry started 69.8%, 0.6% lower than the previous week. It is expected that this week, PS starts are expected to rise slightly, ABS and EPS are expected to change little.
Cost side: last week, the overall oil price oscillation is dominant, the market has no direction, and the intra-day fluctuations are large. The core reasons for oil price volatility are, first, uncertainty from the Fed’s rate hike meeting, the magnitude of the rate hike and expected guidance is the key; second, the market is divided on U.S. gasoline demand, especially the refinery profits are compressed space. U.S. gasoline prices fell, but crude oil remained firm, and the widening price differential between the two oils led to a large number of U.S. crude oil exports. Therefore, macro uncertainty, resulting in oil prices and no direction to speak of, maintaining a wide range of oscillating market. Pure benzene may be expected to fall back.

Supply side: Last week the device has been raising the load, this week stable production, parking device or restart, although there are also enterprises to reduce the negative, but the overall production this week is expected to increase by 2.34%; currently see the next cycle of the main port arrival is expected to 21,500 tons, is expected this week the main port inventory is difficult to have a significant increase.

ABS manufacturers have narrowed the negative space, and with the increase in regional market arrivals, manufacturers may slow down the rate of stock removal or even risk of stock accumulation again. In the short term, the fundamental weakness continues, but there is uncertainty in the commodity and macro markets, the market is still variable. The current domestic supply of styrene continues to increase, downstream demand is less than the incremental supply of styrene, styrene supply and demand side is weak to suppress the upside of styrene space. Styrene is likely to follow the movement of crude oil, and the styrene market is expected to fall in the short term.

Source: Eighth Element Plastics, Business News Service
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