Crude oil prices are showing upward momentum in the near term, yet the international repercussions triggered by U.S. trade policies remain volatile, dampening expectations for a significant rebound in upstream raw material costs. Within the styrene market, supply continues to contract amid production adjustments, while downstream sectors face intensified pressure from rising production-sales margins and looming production cuts due to the approaching May Day holiday, collectively signaling a projected decline in overall demand. Market sentiment currently leans bearish, with a notable inclination toward short-selling on rallies as traders anticipate downside risks.
The interplay between cost-driven factors (i.e., crude oil volatility) and fundamental supply-demand dynamics has created a tug-of-war: while cost support may temporarily bolster styrene prices, weakening demand fundamentals could trigger a subsequent correction. Consequently, the styrene market is expected to exhibit either a "strengthening-then-weakening" trajectory—with initial gains driven by cost pressures giving way to demand-led declines—or remain rangebound amid persistent multi-directional uncertainties.
