subject: Styrene Market Outlook Will Hover Up - Styrene, Ps-plastics Industry [print this page] Recently, prices of raw materials by domestic and foreign manufacturers generally not high operating rates, demand for downstream industries to promote the improvement and other factors, the overall performance of the domestic market of styrene good show small fluctuations in the steady recovery trend. Although the market outlook will face increased output, demand growth slowdown in the negative factors, but in large Economy Environmental warmed under the premise of the pattern of styrene up market as a whole should not change.
Domestic styrene market turbulence experienced in May, after finishing, up from June begun to stabilize, and are subject to multiple positive effects, in August was to have picked up since the market trend. Asian markets sharply higher and the major downstream Polystyrene Strong performance of the main driving force is still rising. The main positive factors: Benzene consumption of styrene as occupying the first product, Benzene prices at home and abroad to promote the styrene market higher; domestic styrene stocks, imports have not kept pace, resulting in market supply and demand balance is broken, prompting market up; downstream polystyrene, ABS And other enterprises to improve the operating rate of increase in demand driving the market higher. Market transactions, the traders in the market actively involved in the downstream procurement initiative to upgrade the factory under the influence of such factors, trading more active.
Looking forward, with some maintenance of styrene and installation has begun enterprises operating rate of increase, production will inevitably increase, low-cost scheduled arrival will also allow ocean-going cargo port stock gradually increased; as early international market prices have gone up faster rate , Europe and Asia-Pacific region will squeeze arbitrage spreads narrow space; enterprises to maintain a low inventory of raw materials or products, fast Sell Business ideas, short-term demand growth slowed. These factors may contribute to the market once again entered a consolidation phase, but the overall upward trend will not change.
Now, the supply of imports is still our major source of styrene, total imports in 2008 to 281 million tons, 52.3% of total supply. But according to the existing capacity planning, to early 2010, China will overtake Japan to become Asia's largest country styrene production capacity. Significant increase in domestic production will increase self-capacity to import-oriented will change. Future, the import of resources and domestic resources must wrestle each other, market competition will become fierce.
End, styrene enterprises should strive to resolve the problem in several markets: business-to-depth analysis of the information is insufficient, the market trend and thus a lack of ideas to influence policy; still more difficult in the current economic situation, peer enterprises in price, output particularly important in areas such as communication; pricing mechanism to solve the business problems, overcome the market caused by individual behavior disorder. The long term, end consumer products constitute the raw material substitution will suppress the potential of styrene, and the enterprises need both the technological innovation and market development efforts such as the introduction of new products have to re-gain market recognition.
