Looking back at the plastic raw material EPS market in May of last year, the downstream market is gradually entering the off-season, the demand for consumption has been reduced, and all the products in the styrene and downstream industry chain have seen a decline or weakened trend. This year's May, the first day after the holiday, benzene Ethylene has risen sharply. Eps manufacturers have repeatedly raised shipping prices. What are the reasons?
How is the trend in the later period?
From the raw material point of view, due to more than one set of domestic installations overhauled in April, the overall inventory of the factory was well controlled, and the arrival of short-term terminals was less, the port inventory had further decline expectations, and the supply and demand side continued to be good, and from the recent disk performance During the phased dips on the floor, the buying momentum was positive, and most merchants were not willing to ship at low prices. If there were no obvious negative externalities, in the short-term perspective in May, styrene is expected to continue to increase in price. However, the cost is hard to find. Good supply and demand side has been released in advance, and since April, the industry’s profits have been high, and the load on start-up equipment has been high. In particular, Shandong Source’s supply in east China is expected to increase significantly in May, and the mid-to-long-term increase of domestic supply will continue to pick up as the stoppage device restarts. , Buying chase fears remain active, then profit-taking rallies in the market will face stagflation callback pressure. In summary, in May the styrene market or the first strong after the weak, the overall shock center of gravity is expected to continue to move up.
From the perspective of supply and demand, the current plastic raw materials EPS plant maintained a low load and the supply of goods was tight. After May Day, downstream construction in Heilongjiang and Jilin increased. The supply and demand demanded good support. However, the downstream foam in the mid-to-late May The product industry has gradually entered production in the off-season, coupled with environmental protection inspections. Demand has shrunk significantly from previous years, and the frequent turbulence of raw materials has made downstream buying more hesitant. As a result, more bulk purchases have been weakened.
In general, in the first half of May, under the support of cost supply and demand, the EPS market may show upward movements in the uptrend. However, if there is no significant positive trend, the EPS cannot be optimistic. In May, the plastic raw material EPS or the raw materials were presented. Out of the trend after the first lift, but the overall operating range may be higher than in April.