Last week, Jiangsu styrene market suffered from Waterloo, and the market turned sharply. The spot cost transmission of 11900-12000 yuan/ton has already plunged the industry mentality. The global stock market crash has become the last straw to overwhelm the styrene market.
From the perspective of the external environment, the direct factors that led to the current market crash, the US three major stock indexes, collectively closed up last Friday. Opening at the beginning of this week, the Shanghai Stock Exchange opened slightly shortly after the opening.
As the periphery picks up, the industry's mentality tends to be calm. Starting from Friday, the spot price of around 11,500 yuan / ton has basically fallen to psychological expectations, and the terminal and some merchants have begun to enter the market.
From the analysis of supply and demand fundamentals, as of now, domestic styrene manufacturers have no inventory pressure, the main downstream manufacturers of finished products, raw materials are mostly low level. Moreover, in the face of the current spot price of 11400-11500 yuan / ton, East China styrene The shipment interest of manufacturers has been greatly reduced. As far as import cargo is concerned, as of now, there will be a significant shrinkage process after the arrival of the ship on October 19. The current mainstream warehouse area still maintains a faster delivery speed. Last Friday, 11400 in Shandong area Yuan/ton of spot supply, Shandong area users are actively purchasing, bulk supply is quickly booked. In addition, SECCO parking maintenance, the remaining contract customer raw material gap has been prepared in advance to pay attention.
In summary, for the recent market, there may be a rebound in the market. As for the magnitude and duration of the rebound, it is still subject to many factors such as industry mentality, actual demand, and external market.