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]

Core Viewpoint - The price of styrene futures has been rising significantly despite high inventory levels, driven by market sentiment and expectations of demand improvement [2][3]. Group 1: Price Dynamics - Styrene futures prices increased due to a combination of "anti-involution" effects and a growing bullish sentiment in downstream markets [2]. - The market sentiment was boosted by news of capacity reductions in the petrochemical sector, including a planned reduction of 2.7 to 3.7 million tons in South Korea's naphtha cracking capacity [2]. - The production profit margins for styrene are currently low, and some production facilities are facing potential shutdowns, which may further influence price dynamics [2][3]. Group 2: Supply and Demand Factors - Despite the price increase, the current spot market for styrene has not shown a corresponding rise, with significant inventory levels still present [4]. - The increase in port arrivals and high visible inventory levels are limiting the potential for further price increases [4]. - The upcoming maintenance schedules for styrene production facilities may alleviate some supply pressure, but overall supply remains high [4]. Group 3: Market Outlook - Analysts suggest that the fundamental supply-demand balance has not fundamentally improved, and the current price increase may be more of a temporary valuation correction [3][4]. - Future price movements will be influenced by the pace of new production capacity coming online and the timing of downstream order placements [4]. - Long-term investment opportunities may exist due to the current low price and valuation of styrene, but the market lacks strong short-term drivers for further price increases [5].

Core Viewpoint - The recent increase in styrene prices is attributed to a combination of "anti-involution" effects and a growing bullish sentiment in downstream markets, despite high inventory levels [2][3]. Group 1: Market Dynamics - Styrene prices have shown a significant upward trend, outpacing the price increase of upstream product benzene, even with high port inventories [1]. - The market sentiment was boosted by news of capacity reductions in the petrochemical sector, particularly in South Korea, which plans to cut its naphtha cracking capacity by 2.7 to 3.7 million tons annually [2]. - The production profit margins for styrene are currently low, and there are potential shutdowns of production facilities due to surrounding power plant issues, which may further influence market dynamics [2]. Group 2: Supply and Demand Factors - The current supply pressure is expected to ease slightly due to planned maintenance in styrene production facilities starting in September, while demand is anticipated to improve as the peak season approaches [2][3]. - Despite the bullish sentiment, the physical market for styrene has not shown a corresponding increase, with inventory levels remaining high and downstream orders not significantly improving [4]. - The introduction of new production capacities, such as the 670,000-ton facility by Jingbo Sidare, may lead to oversupply issues in the Shandong region, potentially affecting price dynamics [4]. Group 3: Future Outlook - Analysts suggest that the current price increase in styrene may lack strong driving forces, as new capacities are expected to come online and maintenance facilities will return to operation, increasing supply again [4]. - There are concerns about demand "overdraft" in the home appliance sector, which may limit the extent of improvements during the peak season [4]. - Long-term perspectives indicate that the current "low price + low valuation" scenario in the petrochemical industry may still present investment opportunities, contingent on policy developments and fundamental changes in supply-demand dynamics [5].