With the arrival of the National Day holiday, some of the downstream areas in the northern region will be stocked in the right way, and the overall transaction volume will be improved. Then, after the National Day, what will happen to the northern styrene market?
From the supply side, after the National Day, the supply of styrene in the northern region will increase.
Specifically, the Shandong region: Shandong Yuhuang Phase I 200,000 tons / year styrene plant plan to restart after the eleventh section, and from the scheduling plan, Qilu Petrochemical will continue to maintain high load operation in October, the main area of Shandong Factory shipments have increased.
Northeast China: Two sets of 225,000 tons/year styrene units of Daqing Petrochemical Co., Ltd., a subsidiary of PetroChina, have been shut down for maintenance on August 1st until September 14th. After the restart, Daqing Petrochemical supplies more for contractors and internal supply. Mainly, in September, the export is infinite. After the National Day, the equipment of the Northeast China National Petroleum Corporation will operate normally, and the pattern of tight supply of styrene in the Northeast will end.
North China: The supply of local goods is relatively stable. Although the load of Tianjin Daxie is relatively high, due to the good control of its inventory level, the sales volume outside the spot is limited. However, with the increase of supply in Shandong and Northeast China in the later period, there may be some cross-regional sources in North China. Inflow.
From the demand side, downstream demand in October was weaker than in September.
At present, the theoretical profit margin of the downstream EPS factory in the northern region is still acceptable, but because the raw material styrene is up and down, the downstream EPS industry is considering the risk prevention, so it is often ordered according to the customer demand, keeping the light warehouse mostly. In October After that, as the weather turns cold, the EPS industry in the north will be affected, and the demand for styrene may shrink.
In terms of ABS/PS, the recent supply of ABS is abundant, the merchants are under pressure, and the profit operation remains. Under the pressure of PS, the price is high for a long time, and the high-priced supply in the short-term is still to be digested. The price of ABS/PS is relatively high in the early stage. At present, the holding cost of the holders is high, and the price is supported in a short period of time. However, as the downstream demand enters the off-season, the overall start of the ABS/PS plant may be affected.
On the whole, after the National Day, the pressure on the fundamentals of the northern styrene market is more obvious. The traditional peak season is gradually coming to an end. In addition, in the context of trade wars, home appliances and automobile exports are blocked, which will also affect the downstream demand of styrene. Ethylene market traders will have difficulty in shipping shipments.