Shouchuang Futures: Costs Rise Again, Styrene Futures Halt Decline and Rebound

On the supply side, domestic styrene loadings slightly decreased last week, with East China styrene port inventories down by 8k tons month-on-month. Due to a sharp rise in upstream ethylene prices, some suppliers announced force majeure, leading to compressed styrene profits, and the styrene production reduction plan for April has increased.
On the demand side, downstream buyers are resistant to high-priced raw materials, demand follow-up is weak, and terminal replenishment has temporarily paused.
In summary, geopolitical conflicts have further escalated, crude oil prices have surged significantly, and cost support remains strong. There are expectations of supply contraction, and in the short term, styrene futures are expected to remain volatile with a slight upward trend, paying attention to geopolitical developments, crude oil prices, and changes in the start-up of upstream and downstream units. (First Capital Futures)