1、 Price trend

Hips market prices fell slightly this week. According to the big data list of business society, the average domestic hips price on June 4 was 12966.67 yuan / ton, down 3.71% from the beginning of the week, and 0.31% on month.

2、 Market analysis

Hips market has continued to decline since the second half of May, while weak market has continued to this day, and hips prices fell 3.7% this week. The raw styrene market has been in a weak market recently, with the cost side support declining, adding the influence of power limit in some regions, reducing some demand. The overall market investment atmosphere is relatively weak, and the sales of the stockholders has some pressure to make the profit and shipment better. In addition, the short-term hips market is weak and the price will continue to weaken. Up to now, the main price of benzene penetration in China is mainly about 10900-11200 yuan / ton, the mainstream price of hips is about 12700-13500 yuan / ton, Guangzhou Petrochemical 660 reference price is 12700 yuan / T, Zhanjiang China and the United States 990 reference price is 12700 yuan / T, Shanghai Secco 622 reference price is 13500 yuan / T, CITIC Guoan 688 reference price is 13100 yuan / ton, and the market market is stable and downward, and the cooling is significant.

International crude oil market, June 3, international oil price was stable and the price changed little. The settlement price of main contract in WTI crude oil futures market in the United States was US $68.81/barrel, down slightly by 0.02 US dollars. The settlement price of the main contract in Brent crude oil futures market was $71.31/barrel, down slightly by $0.04. Oil prices rose significantly in two consecutive trading days, and oil prices stopped rising on Thursday, mainly due to a sharp drop in U.S. crude oil inventories last week, but the inventory of finished oil depots unexpectedly increased.

In terms of raw materials, the Styrene Market in North China declined slightly on June 3. Qingdao refining and chemical and Qilu Petrochemical quoted 9700 yuan / ton today. At the cost end, crude oil rose, and the price of pure benzene increased. The repair unit of pure benzene is restarted and the supply will rise, but the low inventory will continue, and the supply and demand gap will be maintained, which will support the styrene price. On the supply side, the domestic supply of styrene is increasing steadily, the maintenance unit is about to restart, the new unit is about to produce products, and the starting rate continues to rise. With the increase of domestic domestic trade and the amount of imported into East China, the inventory of styrene East China terminal has been expected to be exhausted. Downstream, EPS commencement rate has decreased, PS start rate has picked up slightly, ABS maintains high opening rate, ABS enters the off-season demand, EPS terminal demand is weak, waiting for a while to fall psychology is strong. It is expected that the styrene will weaken in the short term, and the trend of crude oil and pure benzene, the dynamic of the unit and the demand change of downstream should be concerned.

3、 Future forecast

The business agency believes that the raw material shock is weak, the cost side support gradually declines, and the downstream demand is not followed up enough to maintain the purchasing demand. The overall market investment atmosphere is general. Therefore, hips price is falling, and the short-term market is still weak, and the change of raw material price should be concerned.