China Styrene Prices Exceeded RMB 10,000/mt
In September, the styrene market in China experienced substantial increases. Styrene prices are anticipated to remain high in the near term, largely following the price of benzene, but players should be aware of the possibility of a price decline following the sharp increase.
Styrene prices increased as a result of the anticipated supply shortage and high cost. According to SCI, the spot styrene price in the Jiangsu market closed at RMB 10,015/mt on September 13, up 14.85% from RMB 8,720/mt on August 31.
Key drivers:
The primary driving force came from the benzene sector. The continuous rise in crude oil prices, coupled with the sustained low inventory of benzene at the main ports, led to an upward trend in benzene prices, thereby providing strong cost support to styrene prices.
Different degrees of demand growth have been seen in downstream industries of styrene, with the approach of the so-called “Golden September” and “Silver October”. The downstream replenishment process is moving faster than initially anticipated and is supposed to be finished this weekend. Carrying up the inventory, it is still unlikely to see a significant growth in the port inventory. “Based on the arrival schedule throughout the week, the port inventory is more likely to remain basically unchanged or slightly decline,” SCI styrene analyst said.
Future Risks:
Chinese styrene output is projected to increase M-O-M, as a result of unit restart as well as the steady operation of newly added facilities.
The weakening of the demand for oil blending could pressure benzene prices in the future.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
