Zhuochuang Information: The cost transmission triggered by geopolitics remains the main factor driving the rise and fall of styrene prices

This week, styrene prices overall showed a “reverse N” trend. As of the close on March 18, the average price in the Jiangsu market was 10,050 yuan/ton, up by 250 yuan/ton from March 11, a rise of 2.55%. On one hand, international oil prices remain highly volatile due to disruptions from geopolitical news, and domestic chemical products generally follow the ups and downs of oil prices; on the other hand, regarding styrene fundamentals—export transactions, the restart of the Jingbo Sarda Rui unit, and East China main port inventories not falling but instead increasing—these factors have, at this stage, restrained styrene price fluctuations from keeping pace with crude oil. Over the next two weeks, cost transmission triggered by geopolitics will still be the main driver of styrene price gains and losses, but in late March, Tangshan Xuyang’s 300,000-ton/year unit is planned to restart, and Ningxia Baofeng’s 200,000-ton/year unit may produce qualified products, with expectations of an increase in supply. Meanwhile, under sustained high-cost pressure, negative feedback from downstream demand may be concentrated this week, with the main downstream consumption likely decreasing month-on-month; main port inventories may continue to accumulate, and a weakening fundamentals backdrop may suppress styrene prices from falling more than they rise, resulting in “more up than down.” (Zhuochuang Information)