Lead: Entering September, the price of styrene even a record high, as of the close of the 5th, the price of styrene rose to 9075 yuan/ton, up 1965 yuan/ton from the low point of the year, an increase of 27.64%, this afternoon the market once broke through the 9400 mark, continue to renew the high price of styrene in the year, at present, the price of styrene is driven by cost and supply and demand factors. “Golden Nine” or worth looking forward to!

一.Strong cost side support

On the evening of September 5, Saudi Arabia and Russia voluntarily extended production cuts to the end of the year, unexpectedly extending production cuts for 3 months exceeded market expectations, and international crude oil prices once again broke through a new high. Stimulated by the continuous rise of crude oil, superimposed multiple sets of downstream plans for new investment and gold nine silver ten chemical and gasoline market demand to stimulate the pure benzene market, pure benzene market quickly rose to a high, giving styrene strong support.

二.East China port inventory is at a low level, and the recent accumulation of storage is slow

As of September 4, 2023, the total sample inventory of Jiangsu styrene port: 50,200 tons, a decrease of 187,000 tons from the inventory peak of the year, a decrease of 78.84%. According to the data, the port inventory is at a low level in recent years, and according to the shipping schedule tracking of Longzhong Information, the recent port inventory is narrow and volatile, and there is no significant inventory expectation.

Short-term styrene factory and port inventory is low, the supply side pressure is not expected. Under the strong rise of styrene, the three downstream prices also followed up, although the increase is less than styrene, profit pressure is still there, but short-term can still give styrene just needed support, superimposed strong cost support, short-term market or strong shock.

At present, looking at the macro driven, the traditional “gold nine silver ten” hype expectations, the market mentality has changed for the better, but the current styrene price continues to update a new high in the year, with the load increase of Zhejiang petrochemical new equipment and the return of the styrene equipment overhaul of Baolai petrochemical, styrene supply is expected to continue to increase, but “gold nine silver ten” downstream demand orders continue to improve still need to follow up, Although the end of September needs to follow up the stocking sentiment before the 11th holiday, it is still necessary to consider the acceptance of the terminal under the continuous high price, and it is cautiously optimistic about the medium and long term market, and it is recommended to operate cautiously.