Outlook for the hottest styrene

2022-08-14
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Styrene aftermarket forecast

last week, the domestic market showed a slight decline, while the price of SM in the international market, especially in the American market, rose again, showing a sharp decline again

the American market showed a sharp decline last week. It is reported that the SM price in this region broke usd500/mt on the weekend, but the news was not confirmed by buyers. Under the influence of this news, the SM price in the Asian market fell from usd520/mt (FOB) at the beginning of the week to usd510/mt (FOB) at the end of the week. At present, the SM inventory in Southeast Asian countries is still quite high, such as Singapore, Thailand, Taiwan and other countries and regions, and the SM inventory will remain high for a long time

at present, it has emerged that the buyer's expectation of the transaction price of SM in April fell from usd500/mt to usd480/mt (CFR main port in Asia), but more manufacturers insisted that the price of SM could not be lower than the level of usd500/mt. Therefore, at present, the speed of SM import in various countries has slowed down significantly, and the desire for transaction has been greatly reduced

based on Quanqiu, the benefits of ABS, PS and EPS production plants have seriously declined, and there are rumors of reducing production, resulting in a sharp increase in the international market price of SM

based on this, professionals in crude oil producing countries in Europe, especially in Eastern Europe, speculate that due to the decline of SM this time, it has not been impacted by the decline of crude oil price. With the arrival of European summer, the decline of crude oil demand and the limitation of SM storage conditions, SM in the European market may return to the Southeast Asian market again, and the price will be further suppressed

SM in the international market continued to decline slightly, while major domestic manufacturers also lowered their prices again. Some traders with speculative stockpiles of goods can no longer tolerate the declining prices (such as East China). In order to prevent SM from becoming worthless waste and not selling products without an exhibition area of 230656 square meters, SM in the East China market last week is no longer able to support the market of ¥ 5300/ton, The price has fallen to the level of ¥ 52100/ton, and the price in the South China market has also fallen to the level below 5300 yuan/ton. However, based on the replenishment of low-priced goods, SM prices are still showing signs of decline

favorable and unfavorable factors affecting the future market:

1. The raw material cost of SM this week, the prices of pure benzene and ethylene both fell, and the actual production cost of styrene also fell, which may produce good news for manufacturers, but for some buyers of SM, there is no doubt that they can find a reason for the possible decline of SM

2. At present, although the inventory of SM in East China can be alleviated, it will still be very difficult to digest in a short time due to the replenishment of new goods. However, the major traders in the South China market have considerable inventory. In order to digest in a short time, it is very difficult to expand the tensile strength of polystyrene board perpendicular to the board surface

3. At present, the SM price in the international market, especially in the American market, may have broken the usd500/mt threshold, which will have a major blow to the Asian market

4. It is impossible for Asian SM manufacturers to seek speculation in the European and American markets. Although there are maintenance rumors, it has little impact on the market

5. The price of GPPS in the domestic market may break the threshold of 7000 yuan/ton

future market forecast

based on the sharp decline in prices in the international European and American markets in the past two weeks, the Asian market table 1 Introduction field of different carbon material structures, especially the spot import price of SM in Chinese Mainland, will be difficult to support at the usd500/mt CFR China price

in the domestic market, styrene traders and producers have inventories; Due to panic, SM prices may show an undesirable situation in the next week: the price will break the threshold of ¥ 5000/ton; Therefore, the outlook for styrene is difficult to see, and the prospect is worrying

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