Styrene Market Morning Insights

I. Key Points

1. October 27: Multiple parties continued to push for a de-escalation of tensions in the Middle East, easing concerns over supply risks and causing international crude oil prices to fall. NYMEX WTI crude oil futures (December contract) closed at $99.90/bbl, down $1.86/bbl (-1.83% WoW). ICE Brent crude oil futures (December contract) closed at $113.88/bbl, down $1.93/bbl (-1.67% WoW). China INE crude oil futures (December 2026 contract) fell by 8.1 to 731.6 CNY/bbl; the night session dropped by 18.7 to 712.9 CNY/bbl.
2. On October 27, USD-denominated market negotiations were moderate, but RMB prices declined, offering limited support to the market. The USD-denominated market closed lower during the day. FOB Korea settled at $1,475–$1,485/ton, with an average price decrease of $23/ton; CFR China settled at $1,415–$1,425/ton, with an average price decrease of $23/ton. Unit: USD/ton.
3. On October 27, theoretically compared to the previous trading day: Integrated producers saw their theoretical production-sales profit decrease by 224 CNY/ton to 2,473 CNY/ton; non-integrated producers saw their theoretical production-sales loss increase by 63 CNY/ton to -106 CNY/ton.

Core Logic: Crude oil consolidates at high levels; styrene futures fluctuate downward; basis remains firm.

II. Price Table

III. Market Outlook

Styrene: On the cost side, crude oil maintaining high levels provides support, but pure benzene and styrene futures are trending downward amid fluctuations. On the supply side, inventory drawdowns continue at East China ports, coupled with some short-covering buying entering the market, keeping the spot basis firm. Some units at Zhejiang Petrochemical are undergoing maintenance, making it difficult for short-term supply to see significant increases. However, if Lianyungang Petrochemical's units restart as scheduled, there is an expectation of subsequent supply recovery. Demand remains weak, with downstream participants cautious about entering the market and mostly purchasing on an as-needed basis. Overall, lacking new positive catalysts, styrene is likely to remain in a stalemate or consolidate in the short term.

IV. Data Table