Shouchuang Futures: Rising costs combined with favorable export conditions, styrene futures surged and closed the daily limit-up board (posted the up-limit board)

On the supply side, Kuwait’s 450k-ton styrene plant is scheduled for maintenance from early January to the end of February, currently announced as force majeure. Domestically, Xuyang’s 300k-ton styrene plant caught fire and is shut down, with an expected restart in late March. Dalian Hengli’s 720k-ton annual styrene plant plans to shut down for 10 days for maintenance in mid-March. Zibo Junchen’s 500k-ton annual styrene plant plans to undergo 40 days of maintenance at the end of March. Jingbo’s 670k-ton annual styrene plant plans to restart in mid to late March.

On the demand side, offshore supply is tight, and export shipments are active. Additionally, geopolitical tensions have driven crude oil prices higher, with futures prices remaining firm. Downstream buyers are stocking up on styrene, and trading sentiment is decent, which has helped reduce port inventories. This week, port styrene inventories decreased by 0.12 million tons.

In summary, cost support remains strong, and good export performance has driven inventory digestion. It is expected that short-term styrene futures will maintain a relatively strong trend, with attention to crude oil prices, plant operation changes, and downstream resumption progress. (First Capital Futures)