Shouchuang Futures: Cost Support Boosts, Styrene Futures Halt Decline and Rebound

On the supply side, domestic styrene load has increased this week, but the port inventory of styrene in East China decreased by 8k tons week-on-week. 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 slowed down.
In summary, geopolitical conflicts have further escalated, crude oil prices have surged significantly, and cost support remains strong. There is a contraction expectation on the supply side, and it is expected that short-term styrene futures will remain volatile and slightly strong, with attention to geopolitical developments, crude oil prices, and changes in the start-up of upstream and downstream units. (First Capital Futures)