Styrene Industry Chian Overview in May
In May, the styrene industry chain first rose then fell amid macro influences and supply-demand shifts. Styrene outperformed upstream and downstream products which showed relatively stronger trends.
Prices followed a high-then-low monthly pattern. Near mid-May, the ease of U.S.-China tariff tensions briefly lifted chemical market sentiment. However, persistently few end demand orders and unimproved benzene fundamentals capped gains. Due to lacking sustained upward momentum, the entire chain retreated from highs by late May.
Styrene profits improved significantly MoM due to strong fundamentals and low port inventory. Concurrently, weak benzene fundamentals transferred profits to styrene producers. Conversely, downstream PS, EPS and ABS sectors saw margin compression from persistent order shortages. Their operating rate and inventory showed no meaningful improvement.
The styrene chain may face continued pressure with further downside room. Crude oil prices could hold firm but offer limited support amid uncertainties. Benzene supply may rise with higher imports, muting supply-demand improvements and weakening cost support. In June, downstream PS, EPS and ABS demand may soften, reducing demand support for upstream sectors. With no clear macro or fundamental catalysts, the chain’s prices could trend lower.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
