1、 Price trend
According to the monitoring of bulk data of business agency, the mainstream price of styrene in China this week was weak and fluctuated slightly. On Monday (June 8), the sample enterprise price of the business agency was 5600.00 yuan / ton, and on Friday (June 12), the sample enterprise price was 5500.00 yuan / ton, a decrease of 0.89%. The price is 36.93% lower than the same period last year.
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2、 Market analysis
This week, styrene market price was weak and fluctuated slightly. On June 8, East China styrene closed at 5550-5600 yuan / ton, and on June 12, 5550 yuan / ton, down 50 yuan / ton. The above price is Zhangjiagang’s export price. On June 8, South China styrene closed at 5650-5700 yuan / ton, and on June 12, 5650-5700 yuan / ton, stable. The delivery price of the above factories was stable.
In terms of raw materials, crude oil fluctuated in the week, and pure benzene and ethylene in the upper reaches of styrene rose sharply at the same time. As of Friday (June 11), the main quotation of ethylene was 679.75 yuan / ton, up 58.25 yuan / ton, or 9.37%, compared with 621.50 yuan / ton on Friday (June 5). As of Friday (June 11), the mainstream price of pure benzene was 3750.00 yuan / ton, up 90 yuan / ton, or 2.46%, compared with 3660.00 yuan / ton on Friday (June 5).
In terms of inventory, the oversupply situation has not changed in the short term, and the mainstream inventory is still high. It is expected that the inventory volume in the East China reservoir area will still rise next week, the warehouse capacity will be tight, and the pressure of spot selling will be huge. In addition, this week, the operating rate of domestic styrene plants increased to about 80%. Although the cost increase brings cost support in theory, due to the heavy pressure of spot selling, the price of styrene is difficult to rise. The production of styrene plants has been close to the cash flow level, and the overall supply pressure is still large. Total inventory in East China this week was 363500 tons, down 1.06% from 369400 tons last week. Last week, part of the cargo was delayed to unload this week. Affected by the increase of the storage cost of the terminal, the pick-up volume of some terminals increased significantly. This week’s arrival is too much. It is expected that the styrene inventory will remain high next week.
On the downstream side, the overall strength of styrene downstream this week, still maintain a considerable production and marketing profit. PS market, as of Friday (June 12), the main factory price of PS in East China was 7900.00 yuan / ton, which was stable compared with last Friday (June 5). This week, the market was stable and consolidated due to the lack of good news stimulation.
| sulphamic acid |
In the EPS market, as of Friday (June 12), the main ex factory price of EPS in East China was 8187.50 yuan / ton, up 175 yuan / ton or 2.18% compared with 8012.50 yuan / ton on Friday (June 5). EPS market is short of supply, some factories take orders carefully, traders are reluctant to sell at low prices, and the overall performance is strong.
In the ABS market, as of Friday (June 12), the main ex factory quotation of ABS Zhejiang was 13300.00 yuan / ton, up 650 yuan / ton, or 5.14% compared with 12650.00 yuan / ton on Friday (June 5). This week, the demand for ABS terminal home appliances continued to be strong, the spot supply in some markets was tight, the overall inventory was low, and the price is expected to rise and fall in the short term. 3、 In the future, East China’s total inventory is expected to rise in the next week, and crude oil is not expected to be significantly lowered. The cost pressure in the upstream section of styrene is increasing, while the downstream keeps the operating rate unchanged, mainly to maintain rigid demand. Styrene spot sales pressure is still large, and it is expected that next week styrene will be dominated by weak shocks, first weak and then strong. The market needs to pay close attention to the trend of crude oil price.
3、 Future outlook
Next week, the total inventory in East China is still expected to rise, and crude oil is not expected to be significantly lowered. The cost pressure in the upstream section of styrene is increasing, while the operation rate in the downstream remains unchanged, mainly to maintain rigid demand. Styrene spot sales pressure is still large, and it is expected that next week styrene will be dominated by weak shocks, first weak and then strong. The market needs to pay close attention to the trend of crude oil price.
| Sulfamic acid |