Minmetals Futures: Pure benzene port inventory remains high, styrene port inventory continues to decrease

Geopolitical tensions in the Middle East are continuing, and the Strait of Hormuz has not yet resumed shipping. Spot prices for pure benzene remain unchanged, futures prices remain unchanged, and the basis narrows. Spot prices for styrene fall, futures prices rise, and the basis weakens. At present, the styrene non-integrated profit is neutral but on the high side, and the room for upward valuation repair has narrowed. On the cost side, pure benzene plant utilization rebounds from a low level, and supply remains somewhat ample. On the supply side, the profit from ethylbenzene dehydrogenation rises, and styrene plant utilization is trading in a high-level range. On the demand side, the overall operating rates of the three S (three types of styrene-related products) are fluctuating and trending downward. Pure benzene port inventories are being reduced at a high level; styrene port inventories continue to decline. At present, the styrene non-integrated profit has been significantly repaired, and geopolitical impacts have caused large fluctuations in the market. It is recommended to stay in cash and wait and see. (Wuhan Minmetals Futures)