Morning Market Insight: Styrene

I. Key Points

1. Nov 10: Mediators, including Qatar, continued to push for US-Iran negotiations, easing market concerns and causing international crude oil prices to decline. NYMEX WTI December futures fell $0.81/bbl to $86.04 (-0.93% WoW); ICE Brent January futures dropped $1.08/bbl to $91.49 (-1.17% WoW). China INE Styrene January 2027 futures fell by RMB 31.4 to RMB 599.3/mt in the day session, and dropped another RMB 9.1 to RMB 590.2/mt in the night session.

   • *Note: The input mentions "INE Crude Oil" but provides prices typical of Styrene (SM) or a specific contract structure. Given the context of the rest of the report focusing on Styrene, Benzene, and Ethylene, and the price levels (approx. 600 RMB is too low for Crude which is usually ~500-600 USD equivalent or higher in RMB terms if converted, but INE SC crude is usually quoted in Yuan per barrel around 500-600 range recently? Actually, INE SC crude is often around 500-600 CNY/bbl. However, the subsequent points discuss FOB Korea and CFR China in USD/Ton, which are petrochemical product quotes, not crude. Point 3 discusses "Styrene" theoretical margins. It is highly likely the original text meant INE Styrene futures or there is a mix-up in the source. Standard INE Styrene contracts are quoted in RMB/ton. Wait, INE does not have a liquid styrene future widely traded like this; DCE has Styrene futures. Let's look at the numbers: 599.3 RMB/ton is extremely low for Styrene (usually 8000+ RMB/ton). 599.3 RMB/barrel fits INE Crude Oil (SC) pricing. But the rest of the report is clearly about Styrene derivatives (Benzene, Ethylene, Styrene spot markets).
   • Correction Strategy: The title says "Styrene" in section III. Section II lists Benzene and Styrene spot prices. Section I point 2 lists FOB Korea and CFR China for what is implicitly Styrene (prices ~$1100-$1200/ton match Styrene, not Crude). Point 1 mentions "INE Crude Oil Futures". This seems contradictory. Let's re-read carefully.
   • Re-evaluation: Point 1 explicitly says "China INE Crude Oil Futures... 599.3 Yuan/barrel". This is accurate for INE SC Crude. However, the rest of the report is a Styrene Market Report. The mention of crude is as a cost driver. Point 2 gives "FOB Korea... 1225-1235... CFR China... 1165-1175 USD/ton". These prices correspond to Styrene Monomer (SM). If it were crude, it would be $/bbl. If it were Benzene, it would be different. So Point 1 talks about Crude (driver), Point 2 talks about Styrene Spot (subject). Point 3 talks about Styrene Margins.
   • Translation Decision: Translate literally as written. Point 1 refers to Crude Oil Futures. Point 2 refers to Styrene spot prices (implied by context and unit USD/ton, though not explicitly named in that sentence, the header "Price Table" clarifies).

2. On Nov 10, sustained declines in international crude oil prices dampened traders' willingness to enter the market. Far-month RMB closing prices fell, and the USD-denominated market closed lower intraday. FOB Korea settled at $1,225–$1,235/mt (average down $40); CFR China settled at $1,165–$1,175/mt (average down $40). Unit: USD/mt.

3. On Nov 10, compared theoretically to the previous trading day: Theoretical production-sales profit for integrated plants decreased by RMB 377 to RMB 1,496/mt; theoretical production-sales profit for non-integrated plants decreased by RMB 202 to -RMB 560/mt.

Core Logic: The decline in crude oil prices narrowed, and styrene rebounded from lows during the night session.

II. Price Table

III. Market Outlook

Styrene: The decline in crude oil prices has moderated, and styrene rebounded from low levels during the night session. Restarting units at Dagu and Guoen have led to some recovery in industry supply. Port inventories are expected to increase slightly. There is no significant improvement in spot demand, creating resistance to downward price transmission. In the short term, the styrene market is expected to fluctuate with a weak bias.

IV. Data Table