The recent probability of crude oil exhibiting a relatively strong performance is high, which continues to provide a certain degree of support for styrene. The broad balance in supply and demand at the benzene end has improved, but its impact on styrene is not significant, and it is likely to mainly follow the trend of styrene.
Currently, mainstream factories of ethyl acetate have low inventory levels, and their inventory depletion plans during the Lunar New Year holiday period are basically in place. The main bidding factories have relatively low volumes for distant future delivery, significantly affected by transportation issues.
This week, domestic pure benzene supply remained relatively stable; however, a decrease in incoming ships coupled with a significant increase in downstream demand due to concentrated pre-holiday stockpiling led to a substantial surge in pure benzene transaction prices, fueled by crude oil prices.
Impacted by external sanctions news and concentrated pre-holiday stockpiling of oil products, toluene and xylenes prices at Shandong refineries have experienced consecutive and substantial increases of nearly RMB 1,000 per tonne.
Last week, the market entered the pre-New Year stockpiling period, experiencing a trend of falling first and then rising. Coupled with the strengthening of crude oil prices, the price difference between raw materials and styrene narrowed.
With Zhejiang Petrochemical starting to deliver and imported resources arriving at the port, the inventory in East China has risen. The market has slightly declined as downstream buyers are cautious in taking delivery. However, given the support of raw material benzene and the expanding losses of the phenol-acetone plants, the decline in acetone prices is expected to be limited.
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