1、 Price trend

According to the bulk data list of business society, the average price of domestic hips on January 7 was 11266.67 yuan / ton, which was flat compared with the beginning of the week, down 3.12% compared with the beginning of the month and 11.24% month on month.

2、 Market analysis

After returning from the new year’s Day holiday, the upstream styrene price rose slightly to about 8500 yuan / ton, and then drove off and fell. The cost support is still in place. In addition, the hips market has sufficient supply, the enterprise inventory has increased, and the prices of major mainstream manufacturers have not been adjusted for the time being. The dealers continue to make profits for shipment, so there is room for negotiation. Up to now, according to the data of business society, the mainstream ex factory price of hips is mostly about 10800-12500 yuan / ton, and the price of benzene penetration is mostly 9900-10500 yuan / ton. The overall operation of PS is weak.

In the international crude oil market, on December 16, the international oil price rose. U.S. WTI crude oil futures rose by more than 2%, and the settlement price of the main contract was reported as US $72.15/barrel, up US $1.49 or 2.1%. The settlement price of the main contract of Brent crude oil futures was reported as US $75.02/barrel, up US $1.14 or 1.5%. The Federal Reserve made a positive statement and market confidence was boosted. Superimposed on the optimism of US commercial crude oil inventory data and implied demand data, the temporary positive atmosphere in the market overshadowed the concern that the mutant strain Omicron had a negative impact on the economy.

In terms of raw materials, on January 6, Shandong styrene market was weak. Raw material pure benzene fell, but the cost is still partially supported. Styrene futures fell, bad mentality. The port inventory is rising, and there is continuous news that new styrene units are put into operation, which is bad for the market mentality. Under the influence of the continuous fermentation of the epidemic situation, the downstream manufacturers may face the risk of accumulating stocks of styrene years ago or few goods. The market will not buy or fall, and the wait-and-see atmosphere will increase, waiting for the manufacturers to make up the decline. On the whole, styrene will still be weak in the short term.

3、 Future forecast

The business agency believes that at present, the raw materials are volatile, but the cost support is still in progress, but the downstream demand is weakened. Near the Spring Festival holiday, the market trading is gradually weakening, and the hips market is expected to weaken slightly.