test

Member ID:
Password:
Stay logged in for 30 days
Pls change your password according to new rules.
close

login CCFGroup App

Insight | Time: Sep 1 2022 2:56PM  Editor:Michael Zhao
Styrene rises despite falling oil price, short squeeze continues
 
Text size

China's styrene monomer continued its upward move in early September, despite the drop in crude oil on August 31. Buying activities in futures market persisted after the month-end delivery, in consideration of low port inventory. 


L~WODY40W~P2CF(87%A60EH.png


Styrene inventory level went down this week. Styrene monomer tank inventory in East China main ports decreased by 20.9kt week on week to 63.3kt on Aug 31. Cargo arrival was around 27kt and the offtake was around 47.9kt. Commercial inventory, known as the inventory held by traders, was 41.3kt. 


Since late July, Yuhuang and New Solar shut their units due to persisted losses and some integrated producers were also running at lowered rate. Liaoning Bora started a 600kt/year ABS unit Qingdao Haiwan started a 100kt/year PS unit in early August, resulting in less cargoes move to East China ports. Coupled with less import, styrene port inventory remained low. According to China Customs, China imported 59.2kt styrene in July, down 3kt or 4.8% from June import. The import is expected to keep lower due to lowered operating rate in Northeast Asia.


MGR~RGC_LY5R68~VP84CGTW.png

 

Meanwhile, operating rate of ABS/PS units has gradually recovered given improving margins in August. EPS operations also improved in anticipation of better demand. Downstream plants were also expected to stock up styrene in Sep in preparation for the peak demand season in October. 


IG@9[[{Y_YB]KFLJ$L]9EF0.png


Given tight spot availability and improved fundamentals, buying activities were quite aggressive. However, short sellers were inactive to close their positions in the futures market as well. So transactions were stagnated. 


Looking ahead, the market is likely to keep firm in short term before long/short sides closing their positions given tight spot availability and anticipations for improving demand. 


--zcf@ccfgroup.com


[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Related Articles
Styrene monomer market daily (Dec 7, 2022)
Styrene inventory in East China main ports (Dec 7, 2021)
Styrene monomer market daily (Dec 6, 2022)
Styrene monomer market daily (Dec 5, 2022)
Styrene monomer market weekly (Nov 28-Dec 2, 2022)
Styrene monomer market daily (Dec 2, 2022)
Styrene monomer market daily (Dec 1, 2022)
Styrene monomer market daily (Nov 30, 2022)
Styrene inventory in East China main ports (Nov 30, 2021)
Styrene monomer market daily (Nov 29, 2022)
 
Research
To "survive" become main short-term goal of chemical fiber ...
Imported cotton yarn becomes a hot potato: Will the market ...
Polyester market short-term trend and industrial ...
China home textile market operation analysis in H1, 2022
End-user demand changes before and after the COVID-19
Virgin and recycled PSF market operation under high costs ...
 
 

娴欏叕缃戝畨澶33010902000742鍙