Review of Styrene Market in November and market fo

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Review of Styrene Market in November and market forecast in December

in November, the sharp rise in oil prices failed to change the weak and depressed atmosphere of the domestic styrene market. Downstream buyers were mainly on the sidelines, and the market maintained a low trading volume under the poor demand side. As of November 30, the market quotation of styrene in Asia was $1345 ~ 1355/t (FOB Korea), up $5/t from the same period in October; The mainstream transaction price in East China market was 11640 ~ 11660 yuan/t, down 580 ~ 590 yuan/t from the same period in October

aftermarket analysis

by the end of November, domestic styrene prices had further declined. Due to the further aggravation of the capital shortage faced by most downstream companies, some downstream companies are facing difficulties in cash turnover and spot procurement is blocked, and the overall market trading volume is shrinking. However, the continuous falling price and range of EPS factories have led to weak market demand, rare large order negotiations, slow inventory decline, and it is difficult for traders to realize their willingness to ship quickly and return funds

1. The overall weak supply and demand fundamentals of the styrene market have not yet shown signs of improvement, and the downstream demand is still poor. It is noteworthy that many EPS manufacturers have stopped or reduced the operating rate, and may turn to selling raw material styrene, which is a major hidden danger to the later market

2. As the domestic styrene transmission mechanism is increased by the arrival of synchronous belts or reduction units, and the average operating rate of downstream EPS devices decreases, the styrene inventory in East China market continues to increase. Relevant statistics show that the current styrene market inventory in East China is 65000 ~ 70000 tons. Some traders said that at present, the styrene storage tanks in Zhangjiagang and Jiangyin have become tense

3. The tight loan policy of the state has increased the operability of spot goods of traders, and the financial pressure of some traders has prompted traders to lower the mainstream market price in large order quotations

4. Judging from the news, the market is still unsupported at present, and it is obviously good to stop the decline of prices. However, with the continuous and substantial reduction of prices, the market price has gradually approached the low point of this year's market price. Although some traders believe that the current market supply-demand relationship is worse than the low point of 11400 yuan/t in March this year, from the technical point of view, the market has a certain need for confirmation and directional choice at this price

on the whole, in December, China will still be troubled by the state of tight capital and weak downstream, and sufficient supply makes it difficult to maintain the balance of market supply and demand, and the price decline is expected to continue further. However, when the price falls close to the production cost and the factory starts to adjust, the contradiction between supply and demand is expected to gradually ease, and traders' expectations for the first quarter of next year may also attract them to enter the market and build positions around the end of the year, which will become an opportunity to alleviate the decline or bottom rebound

with the support of some buyers, the price in the Asian market is still high and strong, but it may keep the arbitrage in Europe and the United States, which may pose a potential threat to the subsequent supply in Asia. Therefore, it is expected that Asian prices will basically rule out the possibility of further pushing up from the weak state of supply and demand, and will maintain a stable or slightly declining trend in a quiet state. The import market is still facing difficulties in developing new materials and new technologies, the stalemate between the two engines remains, and there is a lack of downstream demand support, but it does not rule out the re intervention of some financiers

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