First Venture Futures: Cost support, plant maintenance, styrene futures prices are ranging with a bullish bias

On the supply side, last week’s styrene operating rate fell slightly by 0.2 percentage points month-over-month. The 360k-ton-per-year styrene unit at Dushanzi Petrochemical was scheduled for a 30-day maintenance starting July 6. The 600k-ton-per-year styrene unit at Lianyungang Petrochemical began reducing load to 70% operation at the start of July. The 670k-ton-per-year styrene unit at Jingbo Sida Rui planned to start shutdown in mid-July due to profit considerations, with the restart plan pending. Last week, total styrene port inventory increased slightly by 0.1 hundred thousand tons month-over-month.

On the demand side, as overall styrene prices stabilized, downstream EPS/PS manufacturers actively replenished inventory. Trading sentiment remained fairly good, but overall follow-through was average, and downstream industry operating rates stayed at a low level.

In summary, the cost side saw a rebound in crude oil and pure benzene prices, which is favorable for styrene futures prices. In addition, some units are still undergoing maintenance recently, and supply expectations are declining. It is expected that in the short term styrene futures will remain in a choppy but slightly bullish trend, and the focus will be on cost-side price movements and changes in port inventory. (Chuangchuang Futures)