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Styrene price hit a 5-year low

wallpapers News 2020-07-09
The Styrene Market Performance of

from January to October this year was relatively stable, the price basically remained above 10500 yuan / ton. In the middle of November, due to the continuous decline of oil price, aromatics market prices generally fell, but styrene rose against the trend due to inventory decline other reasons. However, in the late November, the negative factors became prominent, styrene became a part of the declining products. As of December 12, the price of styrene in East China was only 6200 yuan / ton, a decrease of 47.7% compared with the highest level this year, the price reached a new low in five years. The reason is that crude oil plummets the downstream dem is low.

are the upstream market. Since the middle of June this year, the international crude oil price has been falling all the way. Compared with the high level in June, Brent crude oil has dropped by nearly 40%. To make matters worse, on November 27, as the most influential organization in the global crude oil market, OPEC decided to keep its oil production target at 30 million barrels per day. Hopes of production reduction were dashed. Oil prices plummeted. WTI Brent crude oil fell by as much as 6.74% 6.0% per day. According to statistics, OPEC's crude oil supply accounts for about 40% of the world's oil supply. On the premise that OPEC does not reduce production, the increase of us oil supply the decrease of global dem will inevitably lead to the imbalance of supply dem in the crude oil market. If OPEC fails to reach an agreement on production reduction at the meeting in June next year, the international crude oil price may continue to sink the chemical market will be in a haze. The price of pure benzene, the upstream product of

, has been following the pace of oil price. Since July this year, a downward channel has been opened. With the mentality of buying up not buying down, the market transaction is more light, the downward trend may last until the end of the year. The continuous decline of crude oil pure benzene prices in the upstream has led to pessimistic business mentality low-cost shipping as their own. It is reported that the price difference between Asian styrene upstream pure benzene has narrowed to 212.60 US dollars / ton on November 26. However, only when the price difference between the two is at 250 US dollars / ton, the non comprehensive producers can make profits, the profits of producers will shrink sharply, resulting in increasingly tense market atmosphere.

styrene downstream market is also full of negative. Affected by the decrease in domestic construction dem, downstream products, especially EPS, entered the off-season at the end of November, resulting in a sharp reduction in market dem. On the whole, in recent years, China's polystyrene production capacity has increased at an average annual rate of about 7%, the cumulative new production capacity from 2012 to 2014 is about 800000 tons. However, in terms of dem, the annual growth rate of PS consumption before 2012 was 3.6%, but the pace of dem growth has slowed down after 2012. In the case of supply growth faster than dem growth, the contradiction between supply dem in polystyrene market is becoming more more prominent. In order to relieve the overstocked inventory pressure, most manufacturers choose to reduce the operating rate, the dem for styrene is less less. It is gratifying that recently, China has paid more more attention to the development of energy-saving buildings, which makes the technology of external thermal insulation with exped polystyrene board thin plastering widely used. The dem for EPS used as thermal insulation products in this technology is also increasing, the development momentum is rapid, which is expected to become a new bright spot of styrene downstream products. Recently, the external price of styrene of

has plummeted, low-cost imported goods are concentrated in Hong Kong, which is a heavy blow to the already weak domestic market. According to chemical Online( www.chemsino.com )According to statistics, in 2013, China's styrene output was 5.03 million tons, the import volume was 3.678 million tons, the self-sufficiency rate was 58.1%. It is not difficult to see that styrene is a chemical product with high import dependence. Under the background of such a high proportion of imports, the sudden increase of import volume will certainly affect the supply situation of the domestic market. In 2014, although the overall profit of styrene shrank sharply few new projects were invested started, many projects started in previous years are still in smooth progress. By the end of 2015, China's styrene production capacity will increase by about 12%. The increase of domestic production capacity will squeeze the market share of import sources reduce the impact of import sources on the styrene market.

in a word, the sharp drop of crude oil, the sluggish dem the impact of import sources are the main reasons for the sharp decline of styrene price in recent years. In the case of crude oil prices falling into the abyss the downstream market in the off-season, styrene may not have the opportunity to rebound in the near future.

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