Core Viewpoint - Styrene futures are experiencing weak fluctuations due to a lack of upward momentum despite slight improvements in cost support and high domestic production levels, leading to inventory accumulation expectations [1][3] Supply Side - No new production or shutdowns have been reported in the short term, maintaining high domestic production levels [1] - The market sentiment is influenced by news of China's plans to address petrochemical overcapacity and South Korea's plans to reduce naphtha cracking capacity, which has boosted market optimism [3] Demand Side - Demand remains stable with slight increases in PS and minor decreases in ABS, while EPS shows limited changes; however, downstream purchasing sentiment is unlikely to improve significantly [1] - The overall operating rate of downstream 3S products has increased, contributing to a more optimistic market outlook [3] Market Dynamics - Despite the increase in futures prices, spot prices of styrene have only shown narrow fluctuations, with increases lagging behind futures due to rising port arrivals and high visible inventory levels [3] - Downstream orders have not shown significant improvement, and inventory levels for 3S products continue to accumulate, indicating ongoing pressure on styrene inventories [3] Future Outlook - The supply-demand fundamentals will remain the primary factors influencing styrene futures prices, with key variables including the production schedule of new upstream and downstream facilities, unexpected changes in operational status, and the timing of downstream order placements [3]