News summary
Jiangsu styrene market price risescandylandnodepositbonuscodesSupported by macro policies. In the off-season of LL demand, price pressure increases, and attention should be paid to spot and macroeconomic impacts.
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Styrene Market Trends
The transaction price range of Jiangsu styrene market yesterday was 9650 to 9720 yuan/ton, and the seller quoted 9650 to 9740 yuan/ton. Some high-priced transactions were not mainstream. The buyer's receiving price is concentrated in the range of 9650 to 9720 yuan/ton.
Styrene prices rose broadly, and spot prices climbed accordingly. Benefiting from the boost of macro real estate policies, most commodity markets rose. The fundamentals of the styrene market are stable and prices have increased significantly. Market suppliers actively shipped goods, and market trading activity increased, but the current basis fell slightly late in the day, and high-priced transactions were limited.
The current pre-inventory process in the market continues, and the supply and demand situation of styrene has not shown signs of weakness. Driven by stabilizing raw material prices and improving macro market sentiment, market sentiment has recovered significantly, current prices have rebounded rapidly, and the short-term market trend is expected to remain strong.
LL (polyethylene) market situation
Affected by the concentration of maintenance equipment, the overall production load of PE decreased. The output of standard products decreased year-on-year, the import window closed, and shipping costs increased. Although import profits have improved and the volume of internal orders has increased, PE import supply is expected to remain at a level of 1.1 to 1.15 million tons/month in the second quarter.
PE has entered the off-season of traditional demand, mulch film production continues to shrink, the overall profits of the downstream industry are meager, and the market remains on the sidelines of high-priced supplies. Recently, inventory digestion has slowed down, and upstream inventories have shown a growth trend. Profits of naphtha PE increased month-on-month; the price of non-standard product LD strengthened. The basis of the 09 contract is-130 yuan/ton, and the spot increase is not as good as the market; the price difference between the L2409 and PP2409 contract is about 810 yuan/ton.
Macroeconomic policies and market sentiment provide support for the short-term price of PE. Spot prices lag behind, the basis weakens, upstream inventories accumulate, and price upside is limited. In the medium and long-term outlook, with the gradual recovery of maintenance equipment and weak demand, the contradiction between supply and demand in the PE market may intensify, and prices are at risk of falling. It is necessary to pay close attention to fluctuations in raw material prices.