Q3 Styrene Industrial Chain Prices Fell More than Rose
The performance of the styrene market was general in the third quarter of 2021. The prevailing prices of styrene in Jiangsu Market hovered between RMB 8,450-9,700/mt in Q3, with a fluctuation range of around 15%.
Styrene prices went range-bound in July, decreased in August and moved up in September. In July, under the tug war between strong cost support and weak downstream demand, styrene prices moved sideways. In August, the port inventory of styrene kept rising undermined by the weakness in crude oil and the macro environment, and the styrene market went down accordingly. In September, the cost support strengthened again with oil prices increasing. In addition, domestic supply dropped owing to advanced or unexpected unit maintenance or shutdown. Coupled with the effect of typhoon weather, the market mentality improved significantly. Under this backdrop, styrene prices gained steadily. However, as downstream plants reduced operating rates, styrene prices fell again.
From the perspective of industrial chain, the average prices of styrene industrial chain products in the third quarter generally fell except benzene and PS. In the third quarter, the monthly average price of benzene showed a V-shaped trend. The quarterly average price increased by 5.36% over the previous quarter, mainly supported by the low inventory at main ports and tight spot supply. The monthly average price of PS in the third quarter was basically flat, and the average quarterly price increased by 1.88% from the second quarter, indicating that the game between PS supply-demand fundamentals and cost was at an impasse. Although the monthly average prices of ethylene and ABS showed an increasing trend M-O-M, which was boosted by spot supply crunch, the quarterly average prices still decreased.
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