Newsletter summary

Short dividends in the styrene market continued in MayRoulettetables, but the cost end is strongly supported by pure benzeneRoulettetablesShort-term styrene prices have limited downside. 3s profits become positive superimposed with low inventory, replenishment drives strong. It is recommended that around 9000 try to take more than one small position and follow the principle of short and fast.

Text of news flash

[styrene market ushered in a brief rebound]

Recently, despite the continued increase in short dividends in the market, the strong support of pure benzene on the cost side and the driving force of replenishment can not be ignored. In the investment strategy in May, investors can consider trying multiple trades in the short term.

Behind the short dividends in the market, the centralized return of styrene installations in Northeast Asia and China, the high inventory of household appliances channels, and the decline in styrene prices in Europe, all put pressure on the market. At the same time, the performance-to-price ratio of domestic ethylbenzene blending oil decreased, resulting in the weakening of its driving force on the styrene market.

However, pure benzene at the cost end provides support to the styrene market, and it is expected that pure benzene will remain strong in May, limiting the room for further decline in styrene prices. Tight supply side, concentrated maintenance of downstream devices, active ethylbenzene trading in the United States and reduced supply of pure benzene in South Korea all have a positive impact on the pure benzene market.

Under the background of 3s profits becoming regular and low inventory, the market replenishment drive is strong. PS, ABS, EPS profits, as well as the recovery of 3s production, led to spot trading volume, not affected by the sharp drop in disk prices.

Based on the current market situation, investors are advised to try a small position and more than a single position when the price of styrene is close to 9000, and set a reasonable stop position in the process of bottom detection, following the principle of short and fast.