From the end of March to the beginning of April, the reduction in spot sales of domestic styrenic companies, and the fact that the domestic arbitrage window is basically closed, the northern spot supply is tightening for a short time. With the increase in installation inspections in April, domestic supply will be significantly reduced in April. Market destocking is expected to increase, while the market will increase the chance of finishing price increases.
China's styrene production company main equipment repair schedule:
From the above table, it can be seen that China's styrene market is expected to have about 159-179 million tons/year of conventional unit overhaul capacity in mid-April, accounting for approximately 17.01 to 11.15 percent of the total styrene production capacity. As of April 2 China Benzene In the ethylene market, due to the long-term parking of Lanxing Daqing, Renqiu, Hebei, Dalian Petrochemical, Liaotong, and other old facilities, the total production capacity was 335 thousand tons. It can be seen that the production capacity for the expected parking in mid-April would be about 1922.5-21.25 million tons. In the year, it accounts for approximately 20.59-22.73% of the total production capacity;
In mid-to-late April, Qingdao Bay is expected to resume production and sales, and it is expected that the total capacity of routine maintenance styrene parking will be approximately 165-171 million tons/year, accounting for approximately 17.65 to 18.29% of the total styrene production capacity, plus 335,000 for long-term parking. Ton/year, it is expected that the capacity of the total parking facilities will be 1985,000-2405,000 tons/year, accounting for 21.23-21.88% of the total domestic production capacity; and the start-up of the enterprises will remain low.
It can be seen that with the increase in the overhaul of styrene plants in China, the output of styrene plants in China will be reduced in April. In April, Lihuayi of Shandong, Lishidu of Changzhou, Dagu of Tianjin, and Zhenhai Refinery of Zhenhai were all not available for sale. The sales of Shandong Ebara, Shandong Yuhuang, and Shandong Bay will also be reduced. In addition, Dushanzi Petrochemical began to refurbish the loading and unloading platform for cargo from SINOTRANS in April. The company reduced its production, and is expected to resume normal production and sales in early June, and will also reduce the The addition of low-cost sources in the southwest and other places will definitely help the stocks with higher market digestion levels. In April, the supply will be significantly reduced. The market is expected to move higher, and the chances of consolidation will increase substantially.
In addition, at the end of March, as the sales tasks of mainstream manufacturing companies gradually ended, the domestic supply price phase decreased. According to Zhongyu Information Monitoring: As of March 26-31, PetroChina Northeast, Liaotong Petrochemical, Tianjin Daxu, Qilu Petrochemicals, Zhenhai Refinery, Changzhou Lishid, Shandong Lihuayi, and other northern companies have basically completed the spot sales task, with no spot sales at the end of the month. Shandong Ebara, Shandong Yuhuang, and other small stocks, Dushanzi Northwest, extended There are also few supplements, and there is a tight supply in the northern market, while in East China and South China, due to abundant market inventory reserves, market supply is still relatively abundant, but some high-cost supply sources are temporarily used, and the market circulation is slightly less than the inventory of merchants. data.