Market Overview - On January 19, the styrene market in East China saw an overall increase, with limited spot supply and export transactions boosting market sentiment. However, downstream purchasing at high prices was weak, leading to a decline in trading atmosphere. Traders were reluctant to sell, and external funds were tight, while the styrene industry remained profitable with positive forward sales [1][4]. Profitability - As of January 19, the profit for non-integrated styrene units was approximately 712 RMB per ton [2]. Supply and Demand - Styrene supply: As of January 15, the weekly production was 355,400 tons (a decrease of 300 tons), with an operating rate of 70.86% (a decrease of 0.06%) [3]. - Styrene inventory: As of January 19, the total port inventory in Jiangsu was 93,500 tons, down by 7,100 tons from the previous period. The commodity inventory was 58,900 tons, down by 1,000 tons [3]. - Downstream operations: As of January 15, the operating rates were 54.05% for EPS (an increase of 7.33%), 57.4% for PS (a decrease of 1.5%), and 69.8% for ABS (unchanged) [3]. Market Outlook - The recent export of styrene to Europe and new transactions to India have led to limited port inventory, resulting in a short-term tightening of supply and demand. However, there is strong resistance from downstream buyers at high prices, leading to overall weak terminal orders. EPS cash flow has been compressed, while some factories are operating well for pre-holiday stock production. ABS is facing significant losses, although downstream appliance companies have maintained reasonable order levels in January. Despite the short-term tightening, there are expectations of inventory accumulation before and after the Spring Festival, and the upward potential for styrene prices is limited. Although styrene profits have expanded significantly, the price difference between styrene and pure benzene has widened. The current driving force for styrene remains stronger than that for pure benzene, and a significant increase in supply or a larger reduction in downstream production would be needed to see a contraction in the price difference. The strategy suggests avoiding long positions in the short term and looking for short opportunities in EB03, while also monitoring high processing fees for potential contraction opportunities [4].

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints - EB2510 fluctuated slightly, closing at 7,065 yuan/ton. Supply increased last week, with styrene production up 2.14% to 376,500 tons and capacity utilization up 1.67% to 79.74%. Demand saw mixed changes in downstream operating rates, and consumption of EPS, PS, and ABS decreased 3.41% to 260,900 tons. Styrene factory inventory rose 1.67% to 214,900 tons, while East China port inventory fell 10.18% to 176,500 tons and South China port inventory dropped 20.83% to 19,000 tons. This week, an 800,000 - ton device of Guangdong Petrochemical is planned for maintenance, and the impact of the previously shut - down 320,000 - ton device of Xinpu Petrochemical is expanding, so production and capacity utilization are expected to decline significantly. In September, the impact of maintenance devices is expected to be greater than that of planned production devices, potentially easing supply pressure. Some EPS production - cut devices are resuming, and some PS and ABS devices plan to increase production. Styrene supply - demand is expected to improve, and inventory is expected to decline from high levels. OPEC+ production increase in October is moderate, and the worsening Middle East geopolitical situation provides short - term support for international oil prices. Technically, EB2510 should pay attention to the support near 6,930 and the pressure near 7,200 [2][3] 3. Summary by Related Catalogs 3.1 Futures Market - Futures closing price (active contract) of styrene: 7,065 yuan/ton, down 3,582 yuan/ton; trading volume: 171,741 hands, down 19,324 hands; open interest: 292,319 hands, down 12,936 hands; the closing price of the November contract: 7,074 yuan/ton, up 3 yuan/ton. The long position of the top 20 holders: 391,005 hands; short position: 415,645 hands, down 4,623 hands; net long position: - 24,640 hands, up 1,041 hands; total warehouse receipts: 1,784 hands, down 543 hands [2] 3.2 Spot Market - Spot price of styrene: 7,394 yuan/ton, down 6 yuan/ton; FOB South Korea intermediate price: 868 dollars/ton, down 2 dollars/ton; CFR China intermediate price: 878 dollars/ton, down 2 dollars/ton. Market prices in Northeast China: 7,080 yuan/ton, unchanged; in South China: 7,255 yuan/ton, down 20 yuan/ton; in North China: 7,005 yuan/ton; in East China: 7,095 yuan/ton, down 20 yuan/ton [2] 3.3 Upstream Situation - CFR Northeast Asia intermediate price of ethylene: 841 dollars/ton, unchanged; CFR Southeast Asia intermediate price: 841 dollars/ton, unchanged; CIF Northwest Europe intermediate price: 757 dollars/ton, down 1.5 dollars/ton; FD US Gulf price: 457 dollars/ton, down 6 dollars/ton. Spot price of pure benzene in Taiwan (CIF): 726.93 dollars/ton, unchanged; in Rotterdam (FOB): 663 dollars/ton, up 11 dollars/ton; in the US Gulf (FOB): 258 cents/gallon, up 3 cents/gallon. Market prices of pure benzene in South China: 5,900 yuan/ton, unchanged; in East China: 5,915 yuan/ton, down 15 yuan/ton; in North China: 5,910 yuan/ton, down 50 yuan/ton [2] 3.4 Industry Situation - Styrene overall production rate: 79.74%, up 1.67%; national inventory: 214,857 tons, up 3,531 tons; East China main port total inventory: 176,500 tons, down 20,000 tons; East China main port trade inventory: 87,000 tons, down 9,500 tons [2] 3.5 Downstream Situation - EPS production rate: 52.52%, down 5.83%; ABS production rate: 69%, down 1.8%; PS production rate: 61%, up 1.1%; UPR production rate: 33%, down 1%; styrene - butadiene rubber production rate: 67.65%, up 0.61% [2] 3.6 Industry News - From August 29 to September 4, China's styrene factory overall output was 376,500 tons, up 2.14% from the previous period, and the factory capacity utilization rate was 79.74%, up 1.67% month - on - month. The consumption of China's styrene main downstream products (EPS, PS, ABS) was 260,900 tons, down 3.41% from the previous week. As of September 4, China's styrene factory sample inventory was 214,900 tons, up 1.67% from the previous cycle [2]

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core View of the Report - EB2509 oscillated strongly, closing at 7,322 yuan/ton. The supply side shows a week-on-week decrease in styrene production and capacity utilization. The demand side indicates varying changes in the downstream operating rates, with a week-on-week decrease in consumption. In terms of inventory, there were week-on-week decreases in factory and East China port inventories, and an increase in South China port inventory. This week, production and capacity utilization are expected to rise week-on-week. The non-integrated profit has fallen to a loss level, and in the long term, the high operating state of the devices may not be sustainable. In the short term, demand is expected to increase, but weak downstream demand and inventory accumulation expectations may restrain demand growth. The supply and demand of styrene will both increase, but the situation of supply exceeding demand is expected to continue, and inventory pressure may continue to rise. In terms of cost, international oil prices are expected to oscillate. Driven by macro-level positives, industrial products rose during the day. The EB2509 futures price has a small premium or discount, and it is expected to oscillate in the short term, with the range around 7,200 - 7,400 yuan/ton [2] Group 3: Summary by Related Catalogs Futures Market - The closing price of the active styrene futures contract was 7,322 yuan/ton, a week-on-week increase of 72 yuan/ton; the trading volume was 214,365 lots, a week-on-week increase of 19,003 lots; the open interest was 210,323 lots, a week-on-week decrease of 16,855 lots. The closing price of the October contract was 7,348 yuan/ton, a week-on-week increase of 76 yuan/ton. The long positions of the top 20 holders were 314,868 lots, and the net long positions were -17,227 lots, a week-on-week decrease of 4,811 lots; the short positions were 332,095 lots, a week-on-week increase of 13,674 lots. The spot price of styrene was 7,610 yuan/ton. The total number of warehouse receipts was 6 lots. The FOB South Korea intermediate price was 889 US dollars/ton, a week-on-week decrease of 2 US dollars/ton; the CFR China intermediate price was 899 US dollars/ton [2] 现货市场 - The mainstream price of styrene in the Northeast region was 7,350 yuan/ton, unchanged; in the South China region, it was 7,465 yuan/ton, unchanged; in the North China region, it was 7,275 yuan/ton, a week-on-week decrease of 50 yuan/ton; in the East China region, it was 7,305 yuan/ton, a week-on-week increase of 10 yuan/ton [2] Upstream Situation - The CFR Northeast Asia intermediate price of ethylene was 826 US dollars/ton, a week-on-week increase of 5 US dollars/ton; the CFR Southeast Asia intermediate price was 831 US dollars/ton, unchanged; the CIF Northwest Europe intermediate price was 869 US dollars/ton, a week-on-week decrease of 6.5 US dollars/ton; the FD US Gulf price was 457 US dollars/ton, a week-on-week decrease of 6 US dollars/ton. The spot price of pure benzene in Taiwan's CIF was 744.81 US dollars/ton; the FOB price in the US Gulf was 273 US cents/gallon; the FOB price in Rotterdam was 720 US dollars/ton, a week-on-week decrease of 4 US dollars/ton. The market price of pure benzene in the South China market was 6,050 yuan/ton, unchanged; in the East China market, it was 6,115 yuan/ton, a week-on-week decrease of 20 yuan/ton; in the North China market, it was 6,160 yuan/ton, unchanged [2] Industrial Situation - The overall operating rate of styrene was 77.73%, a week-on-week decrease of 1.19%. The national inventory of styrene was 211,455 tons, a week-on-week decrease of 5,884 tons. The total inventory in the East China main port was 148,800 tons, a week-on-week decrease of 10,200 tons; the trade inventory was 69,500 tons, a week-on-week increase of 3,000 tons [2] Downstream Situation - The operating rate of EPS was 43.67%, a week-on-week decrease of 10.58%; the operating rate of ABS was 71.1%, a week-on-week increase of 5.2%; the operating rate of PS was 55%, a week-on-week increase of 1.7%; the operating rate of UPR was 30%, a week-on-week increase of 1%; the operating rate of styrene-butadiene rubber was 73.35%, a week-on-week decrease of 0.07% [2] Industry News - The Ministry of Finance, the Central Bank and other departments issued the Implementation Plan for the Loan Interest Subsidy Policy for Service Industry Business Entities, providing interest subsidies for eligible service industry business loans. According to Xinhua News Agency, China and the US agreed to suspend the implementation of the 24% tariff for 90 days starting from August 12, 2025. From August 1 to August 7, the overall output of Chinese styrene plants was 359,200 tons, a week-on-week decrease of 0.64%; the plant capacity utilization rate was 77.73%, a week-on-week decrease of 1.19%. The consumption of the main downstream products (EPS, PS, ABS) of styrene in China was 238,100 tons, a week-on-week decrease of 3.17%. As of August 7, the sample inventory of Chinese styrene plants was 211,500 tons, a week-on-week decrease of 2.71% [2]