Domestic companies raised the profit inflection point of the industry
Domestic companies raised the profit inflection point of the industry
This week, a number of styrene factories have raised the price of the factory, which has been raised by 200 yuan/ton, and tianjin dagu up 50 yuan/ton. Since last week, styrene has recovered, rising by 2.3%. The price of styrene fell to 10875 yuan/ton from July to August from 11,950 yuan, the lowest price in two years, or about 9.38 percent. The price of styrene has finally rebounded this week to welcome the belated rally.
From nearly two years of historical data, in the past years, after the decline of April and may, the summer is the peak demand for styrene. In 2012, the demand for styrene rose from 9,000 yuan/ton to 14,000 yuan/ton in July and October, up 46 percent. The good market stimulated many manufacturers to expand the production of new devices while increasing the availability of existing installations.
According to the expert analysis, the market of styrene is not very different from the supply and demand, and the production capacity of the big wave in 2012 will be reflected in the market after a year or so, and the supply exceeds demand. Last year, the price of styrene was delayed until late August to mid-october, and the increase was back to 10.48 per cent. Since the end of last year, the market has been forced to lower prices of styrene by absorbing new capacity.
The price of styrene has risen by 200 yuan/ton in the last week of this year, as the supply glut has adjusted. The main reason is that the factories have been taking stock and reducing installation rate to deal with the scarce market. China petroleum, tianjin dagu, shandong yuhuang and other manufacturers reduced the rate to about 60 percent in August, the majority of the digestive inventory. In China, 60, 000 tons of oil, 60,000 tons of jinxi chemical industry and 500,000 tons of styrene devices in tianjin were able to reduce the market decline. At the same time, due to domestic over 40% dependent on overseas styrene, styrene mid-september Japan, South Korea unit into multiple factors such as centralized maintenance period for low inventory, low styrene to domestic spot short-term good fundamentals.
One of upstream raw materials ethylene, styrene as part of the large-scale production plant stop overhaul, ethylene supply gap is larger, the recent Asian market estimates ethylene supply shortage will continue until October, another raw material of pure benzene and styrene prices from falling stability in two weeks.
According to the professional analysis, the low yield and good lack of favorable conditions in the lower reaches of the lower reaches of the river have caused the continuous low of pure benzene in the last two months, and there is no surplus in the pure benzene supply side. Sinopec's single-day inventory is low, which has remained below 15, 000 tons for nearly two weeks, down about 60 percent from last year, the lowest level in two years. Sinopec qilu petrochemical 200000 tons of styrene to raise capacity utilization to eighty percent last week, as the styrene market demand has rebounded, pure benzene supply is expected to further squeeze, drive the styrene prices higher. From the above two aspects, it is expected that styrene will continue to rise in the short term to early October. But in the long run, because one of the main downstream products of styrene EPS (polystyrene) capacity utilization is not high, at the same time, the upstream raw material prices exist uncertainties, styrene is expected to peak season is coming, but a steady rise in price, gains may be on the low side.
