1、 Price trend

According to the monitoring of bulk data of business agency, the domestic mainstream styrene prices fell this week. On Monday (July 12), the sample enterprise price of business agency was 9412.5 yuan / ton, while the price of sample enterprises on Friday (July 16) was 9312.5 yuan / ton, down 1.06%. Prices rose 71.40 per cent from the same period last year.

2、 Market analysis

Styrene market prices fell this week. On July 12, East China styrene closed near 9350-9450 yuan / T, and on July 16, 9200-9350 yuan / ton was lowered by 100 yuan / ton, which is the price of Zhangjiagang out of tank. On July 12, South China styrene closed near 9500-9550 yuan / ton, and the price remained stable on July 16. The above factories delivered the price. Raw materials, this week crude oil high volatility, pure benzene vibration fell back, ethylene slightly up. The fluctuation of pure benzene in upstream styrene fell this week. On Friday (July 16), the mainstream price of pure benzene was 8530.00 yuan / ton, down slightly compared with 8540.00 yuan / ton on Monday. The basic surface of pure benzene is still optimistic this week, and the price is firm. The second phase of pure benzene Zhejiang Petrochemical will be mass production in late July, but Shandong Weilian chemical and Northern Huajin maintenance will hedge some production, and the price will still be slightly strong.

For ethylene, the mainstream quotation of ethylene on Friday (July 16) was 1048.75 yuan / ton, a small increase from 1031.5 yuan / ton on Monday (July 12). The price of ethylene market is rising and falling in different ways this week, with the overall trend of rising. The demand of the external market is good, the purchasing atmosphere is active and the transaction is good.

In terms of inventory, as of July 14, the inventory of East China port was 805 (-029) million tons, and the inventory fell slightly. However, with the commissioning of new styrene plant, it is expected that the inventory will be tired in the later period. In terms of domestic production, some factories have the performance of reducing amplitude and short-term parking due to profit and failure problems. Zhejiang Petrochemical Industry and Petrochemical Corporation reduced the burden of 1-2 days on July 13 for 1-2 days; Huajin in the North has a total of 170000 tons / year plant, which will be put into parking and maintenance for one month on July 15; Huatai Shengfu plans to reduce the negative operation at the end of month for 400000 tons / year; It is planned that the parking and maintenance of Daqing Petrochemical Company will be 15 days on July 20, 25000 tons / year; Qilu Petrochemical 200000 tons / year is planned to stop and repair 45 days on August 5; Jilin Petrochemical Company was restarted on July 15, 320000 tons / year, and 140000 tons / year was planned to restart on July 22; The 600000 ton / a unit of Gulei petrochemical company was delayed to start up until the end of July, with the increase of unit maintenance and supply increment less than expected. However, with the expected restart of the maintenance unit, the increase of supply end is expected to be obvious in the short term, which can not provide favorable support for styrene price.

Downstream, the overall starting rate of styrene downstream this week is good. PS market, as of Friday (July 16), the main ex factory quotation of East China PS was 10600 yuan / ton, which was stable compared with Monday. The end appliance industry entered the off-season, affected by chip shortage, the output decreased, and the shipping cost increased, leading to the decline of export.

EPS market, as of Friday (July 16), the main ex factory quotation of EPS in East China was 10800.00 yuan / ton, which was flat from Monday. The overall EPS operating rate increased, and terminal demand was still weak.

In the ABS market, the main ex factory quotation of ABS Zhejiang was 17950.00 yuan / ton as of Friday (July 16), up 150 yuan / ton, or 0.84% from 17800 yuan / ton on Monday. This week, the ABS start rate has risen, Jilin Petrochemical has restarted 580000 tons / year, Liaotong chemical industry has stopped for 35 days on July 14, 200thousand tons / year, but the terminal demand is still in the off season.

3、 Future outlook

Opec+ still has the intention of increasing production, and the crude oil may be callback at a high level. The cost end will affect the cost support point of styrene due to the output of the second phase of Sinopec and the strong weak basic surface of pure benzene next week. In terms of supply, the project will restart, Huajin Park in North China, and some of the major units in East China will resume after a short cut off. Next week, the overall start-up and supply of styrene will increase. While the three downstream of the demand end are still maintaining the current situation, the possibility of increasing demand is not very likely, and the factory is mostly contract oriented, and the spot purchase atmosphere is still not optimistic. Styrene or shocks are expected to fall next week.