Styrene Market Morning Update

I. Key Points

1. Oct 22: International crude oil prices rose due to market concerns over potential escalation of the US-Iran conflict and supply risks heightened by Houthi attacks on Saudi Arabia. The NYMEX WTI December contract closed at $99.47/bbl, up $2.32 (+2.39%). The ICE Brent December contract closed at $113.17/bbl, up $4.35 (+4.00%). The INE Crude Oil futures (contract SC2612) rose by 1.2 yuan to 702 yuan/barrel, with night session gains pushing it to 713.2 yuan/barrel (+11.2).
2. Oct 22: Supported by rising crude oil prices, far-month RMB-denominated prices increased, providing support to the USD-denominated market, which closed higher for the day. FOB Korea settled at $1,450–$1,460/ton (average +$20); CFR China settled at $1,390–$1,400/ton (average +$20).
3. Oct 22: Compared to the previous trading day, theoretical production-sales margins for integrated plants decreased by 98 yuan/ton to 2,332 yuan/ton; losses for non-integrated plants narrowed by 92 yuan/ton to -183 yuan/ton.

Core Logic: Crude oil trends remain strong, providing cost support and maintaining decent market sentiment. However, spot demand is limited to rigid procurement needs, short-covering activities have faded towards month-end, and basis strength has weakened.

II. Price Table

III. Market Outlook

Styrene: With crude oil trending stronger, cost support and market sentiment remain relatively positive. However, spot transactions are driven mainly by rigid demand, short-covering momentum has diminished near month-end, and the basis has weakened. In South and North China, some units have adjusted operations (increases and decreases mixed), so overall industry supply fluctuation is expected to be minor. Port inventories are low, creating a tight spot market situation. Nevertheless, considering downstream negative feedback and weak demand's resistance to high raw material costs, styrene prices are likely to continue oscillating in the short term.

IV. Data Table