Oil prices push ethylene up

Overnight, crude oil prices closed higher on the back of a decline in crude oil inventories.

Supported by the rebound in crude oil, Asian ethylene closed higher overnight. CFR Northeast Asia shocked by 4 US dollars / ton, to close at 1303.5-1306.5 US dollars / ton; CFR Southeast Asian market temporarily maintained at 1373.5-1375.5 US dollars / ton. At the same time, the tight supply of ethylene in some regions also provided support for market prices. Therefore, ethylene Northeast Asia spot market rose narrowly. Downstream demand remained weak, showing some of the increase. The market in Southeast Asia continues to be bleak and businesses are waiting to see more.

Asian styrene has not escaped the shadow of decline, and it closed down again overnight. This is the Asian styrene fell for eight consecutive trading days. FOB Korea closed at $1445-1446/t, down $12/t from the previous trading day, and CFR China closed at $1459-1460/t, down $9 from the previous trading day. Buyers on the floor are more wait-and-see bids, and offer orders are increasing, but the industry is bearish on the market outlook.

The domestic styrene market continues to be weak. The market sentiment remained muted and the mentality of the industry continued to deteriorate. Jiangsu styrene has a strong atmosphere in early trading today. There are sporadic quotes heard at 10,500 to 10,550 yuan, the outlook still looks hollow, and expect the market outlook to pick up.