Styrene increase in the prices come out on top
Time：2012-10-16 10:10:07 Hits：1741
Styrene prices skyrocketing performance this year and last year starker. The lowest point of the domestic market last year to 9,900 yuan in early November, the highest point of 12,000 yuan in early August, only 2100 yuan trading range throughout the year.
According to statistics, as of September 26, the month of styrene prices rose as high as 18.1%, came out top in the aromatics products, the upstream benzene over the same period rose 11.5%. The prices of other raw materials ethylene (CFR Northeast Asia) and even fell 1.8%. Styrene prices rise significantly over supplies of raw materials. Well, styrene why so crazy?
The reason is mainly the impact of the supply-side. August, Tianjin Petrochemical, Sinopec Qingdao and Dalian Fujia Dahua multiple sets aromatics plant parking, domestic benzene market supply, and styrene production was interrupted.
The Tianjin Petrochemical 400,000 tons / year of pure benzene devices closed on August 15, a 45-day overhaul, a direct result of of Tianjin Dagu 500,000 tons / year styrene plant shut down. Jiangsu ShuangLiang LI SHI DE Chemical Company styrene plant operating rate fell to 50% from 80% to 90%. Huajin Chemical closed from August 1 Panjin 225,000 tons / year styrene plant, a 45-day overhaul.
On the other hand, the ocean arbitrage goods to reduce the degree of tight supply exacerbated by the Asian styrene. Styrolution in Canada Sarnia 455,000 tons / year styrene Plan overhaul, have to stop until the end of October. The company in Texas, USA 485,000 t / year styrene plant still parking, the company has not announced the device when re car. The two sets of device repair the source of supply of styrene can be used to export North American market. In Europe in mid-September, styrene market price for 1750 to $ 1820 (FOB Rotterdam), over the same period CFR China high price of about $ 200. This arbitrage reverse itself, some traders to styrene from Asia to Europe, resulting in the Asian styrene market supply more tense.
Show a downward trend due to tight supply, domestic styrene inventory. East China port at the beginning of styrene inventory of about 100,000 tons, and thereafter continues to rise, to reach 140,000 to 150,000 tons in February. But after June, port stocks declined for 10 consecutive weeks. As of September 26, the inventory has dropped to less than 40,000 tons, only about 1/4 of the February peak.
It is worth noting that the styrene high prices has been the demand for the formation of the repression. Although the third quarter is the peak of China's export products, domestic styrene resin demand usually increases. But this year, the sluggish external demand, styrene prices surged further inhibit the downstream operating rates.
Styrene resin manufacturers are forced to reduce the the device operating rate. Taiwan Jianlong Group closed on September 17 in Jiangyin of 450,000 tons / year expandable polystyrene (EPS) device, shut down for maintenance. Another major EPS manufacturer Xingda Group device overall operating rate reduced from full load to 70%. Polystyrene aspects, Yanshan Petrochemical, Wuxi Weida device parking; Hong Kong Petrochemical 140,000 tons / year plant operating rate dropped from 90% in early August to September, from 60% to 65%; Fujian Xing Fang, Zhanjiang, China and the United States device to maintain low load operation; Close all Santou three production lines before the National Day, October 10, has a resume production, another two optional machine recovery. ABS side, the domestic unit average operating rate of 55% to 65%, and the operating rate of the previous years, the peak production season is generally in the range of 75% to 85%.
Has lagged far behind demand, traders divided on whether the market outlook, market can continue to rise, some businesses once started shipping arbitrage. September 18, the East China market styrene price soon dropped from the high point of 13,000 yuan to 12,700 yuan. Although since then the price gradually picked up, but no doubt the styrene market speculation warm atmosphere sounded the alarm.
However, the short-term styrene market there are still a number of favorable factors. Benzene prices remain strong, from the upstream raw material point of view, the domestic market price has reached 10,300 yuan. But with the international crude oil prices continued to decline, pure benzene market outlook, market ability to maintain a strong presence of some uncertainty. From the supply side, the Dagu 50 tons / year styrene plant has restarted, but will give priority to the supply the contract cargo and downstream ABS unit, export limited; Shandong Yuhuang 200,000 tons / year styrene plant operating rate remained at 60 %; Changzhou new day 250,000 tons / year, Ningbo Ke $ 100,000 t / year plant into the parking overhaul. Therefore, the market supply is still tight. Expected after the National Day styrene prices will continue to be supported, but the pre-crazy market trend should be difficult to reproduce.
