Recently, Sinochem Quanzhou's 450,000-ton/year styrene unit has been restarted; PetroChina Tarim Petrochemical (Phase II) air separation unit was successfully started up at one go, laying the foundation for the full commissioning of the 1.2 million-ton/year ethylene project. PriceSeek analysis on styrene, long-short score: -1. The restart of Sinochem Quanzhou's 450,000-ton/year styrene unit increases market supply, exerting downward pressure on spot prices, with significant bearish factors. Combined with the recent upward trend in styrene futures contracts (e.g., 2605 closing price at 7,646 yuan/ton, change +60), the release of new capacity may curb future gains, increasing the risk of oversupply, rated as generally bearish (-1). Ethylene, long-short score: -1. The foundation for the full commissioning of PetroChina Tarim Petrochemical's 1.2 million-ton/year ethylene project will significantly boost ethylene supply, creating bearish pressure on spot prices. Using polyethylene futures (e.g., 2605 closing price at 6,967 yuan/ton, change +73) as a proxy indicator, although the current market is relatively strong, the addition of new capacity may exacerbate supply-demand imbalances and suppress price upside, rated as generally bearish (-1).
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