In early March, the domestic PS market saw a strong upward trend. The spot prices of most brands have increased significantly. According to the bulk ranking data of Shengyi Society, as of March 5th, the benchmark price of Shengyi Society’s PS was 9033.33 yuan/ton, with a month on month increase or decrease of+7.54%.
Fundamental analysis
Cost factor: Recently, the styrene market has risen strongly due to the influence of raw materials. The combination of geopolitical conflicts in the Middle East and transportation disruptions in the Strait of Hormuz has driven up international prices of crude oil, as well as a range of chemical products such as pure benzene and ethylene, due to concerns about market supply. In addition, with some styrene units undergoing maintenance and negotiation in March, there is a strong driving force in the current industry, which supports the PS market.
Supply and demand level: Recently, the domestic PS industry has experienced significant stability and small fluctuations. The domestic operating rate has been low for a long time, and the inventory position is controllable. The return of production capacity after the holiday is not obvious, resulting in tight supply of some brands. The scale of downstream product factories such as electrical appliances and packaging gradually increases after the holiday, and the on-site demand strengthens. At the same time, following some price chasing orders, styrene has entered a phase of tight supply and concentrated demand.
Future forecast
In early March, the domestic PS market showed a strong upward trend. The production load of the aggregation plant is stable, and consumer demand for replenishment, rigid demand, and price chasing are all coming out. Business analysts believe that raw materials such as styrene in the upstream of the industrial chain have jumped due to various influences, and with cost support, PS spot prices have risen rapidly. However, due to cost pressures, the improvement of PS company’s profitability is limited. It is expected that the PS market will continue to rise in the short term, and it is recommended to closely monitor the situation in the Middle East and upstream markets.
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