Lead-in: The domestic styrene market recently trended downward before rebounding. During the period, mainstream spot transactions in Jiangsu ranged from 9,980 to 10,480 yuan/ton, with a price spread of 500 yuan/ton between the high and low points. For the upcoming period, the styrene market is expected to trade in a firm range. Persistent supply risks continue to support crude oil prices. On the fundamentals front, benzene inventories remain low with strong basis levels. Losses for non-integrated styrene units have deepened, and unplanned production cuts by some facilities cannot be ruled out. Supply recovery is lagging behind expectations, while exporters are discussing vessel shipments, making it difficult to fundamentally reverse the current tight spot supply situation in the short term. However, negative feedback from downstream sectors is evident, and reduced demand ahead of the National Day and Mid-Autumn Festival holidays may cap upside potential. Mainstream spot transaction prices are projected to reference a range of 10,100–10,600 yuan/ton.
Strong Cost Guidance Drives Styrene Market Downward Then Upward
The domestic styrene market recently declined before rebounding. During this period, mainstream spot transactions in Jiangsu were concentrated within the range of 9,980–10,480 yuan/ton, representing a high-low spread of 500 yuan/ton. At the beginning of the week, falling crude oil prices weakened cost support. Coupled with poor margins for downstream end-users and weak demand, market sentiment was subdued, leading to a sharp drop in spot prices. Subsequently, crude oil prices rebounded, and concentrated short-covering in the benzene market drove a significant increase in benzene prices, strongly boosting market confidence via improved cost support. Additionally, pre-holiday restocking demand from downstream sectors gradually materialized. In South China, tight spot resources kept prices at elevated levels. These multiple positive factors collectively pushed up styrene spot prices. Overall, this week’s styrene prices followed fluctuations in crude oil and benzene costs, as well as temporary demand disturbances such as pre-holiday restocking and month-end short-covering, resulting in a pattern of initial decline followed by a rebound.
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