The Styrene Market Fluctuated Within a Narrow Range This Week (June 1-5)

The styrene market experienced minor fluctuations within a narrow range during the week of June 1-5. The average price of styrene was 8,844 RMB/ton at the beginning of the week and slightly increased to 8,850 RMB/ton by the weekend, marking a weekly increase of 0.07%.

From a macroeconomic perspective, international crude oil futures closed lower on June 4, with the U.S. WTI crude oil July contract settling at $93.04 per barrel, a decrease of $2.98 or 3.1%. Similarly, the Brent crude oil August contract settled at $93.04 per barrel, down $2.78 or 2.8%. This decline in crude oil prices was influenced by geopolitical conflicts, which initially caused chemical product prices to fall before rebounding.

In terms of cost, benzene prices saw a slight rise this week. Despite this, the market faced limited momentum for further price increases due to traders selling at higher levels. Additionally, port inventories continued to decline with limited incoming shipments, suggesting a trend of destocking. However, concerns remain about downstream demand.

On the supply and demand front, some units that were under maintenance have restarted, leading to a gradual rise in industry operating rates and an increase in the supply of goods. Although raw material prices have fallen and downstream profit margins have recovered, weak downstream demand and cautious speculative buying are limiting any significant rebound in styrene prices.

Looking ahead, the supply and demand for styrene are expected to remain tight in June, although the pace of inventory drawdown may slow, and fundamental drivers for the market remain uncertain.