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    Home > Organic Chemistry Topics > Organic Chemistry Project > Inventory of major events in the styrene industry market in the first half of 2017

    Inventory of major events in the styrene industry market in the first half of 2017

    • Last Update: 2022-02-18
    • Source: Internet
    • Author: User
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    In 2017, there are three sets of styrene plants planned to be put into operation/expansion in China, with a total capacity of 700,000 tons/year.
    However, in the first half of the year, only Jiujiang Petrochemical’s 80,000 tons/year new equipment was put into operation in April, and the other two were newly added/expanded.
    Energy plants have been postponed to varying degrees.
    Near the end of July, Ningbo Keyuan said that qualified products have been produced and the load is further increasing.
    Before the draft, China’s total styrene production capacity reached 8.
    61 million tons per year.
    The new plant of 500,000 tons/year was put into operation as scheduled, and China’s styrene production capacity will exceed 9 million tons/year
    .
    ? Wharf inventory has been sorted out broadly, rising sharply in the first quarter and declining faster in the second quarter
    .
    ? From the perspective of East China's styrene inventory trend in 2017, the characteristics of "a sharp increase in the first quarter and an accelerated decline in the second quarter" were seen.
    In the first quarter, some downstream terminal factories during the traditional Spring Festival had reduced and stopped production for a long time, and shipments in the reservoir area were shrinking significantly or even in stages.
    In a stagnant state, some ocean-going cargoes have arrived in Hong Kong one after another to replenish.
    The domestic production has increased significantly, and the imbalance between supply and demand is obvious.
    As of the end of March, the highest inventory level reached 227,900 tons
    .
    In the second quarter, the pace of destocking of terminals has accelerated significantly.
    First, the import volume has significantly decreased, and the operating rate and output of domestic installations have declined compared with the first quarter; secondly, the main downstream demand has steadily increased; thirdly, the export of bulk sources has been shifted to accelerate the terminal Inventories have fallen, and as of the end of June, inventories have fallen to 72,600 tons
    .
    In the first half of the year, the difference in terminal inventory reached 167,800 tons
    .
    ? Production increased in the first half of the year, but imports decreased
    .
    ? China's total styrene production in the first half of the year was approximately 3.
    112 million tons, an increase of 307,000 tons or 10.
    94% from the 2.
    805 million tons in the first half of 2016, mainly due to the increase in domestic styrene production capacity, but it is worth mentioning that , The average operating rate in the first half of the year was about 73.
    89%, a narrow drop of 2.
    11% from 76% in the same period last year.
    In addition, according to statistics from the Customs and Statistics Bureau, China’s total imports of styrene in the first half of 2017 were 1,466,200 tons, which was a significant drop from the same period last year.
    A decrease of 351,700 tons, a decrease of 19.
    35%, was mainly due to the obvious shrinkage of ocean imports and the decrease in supply of maintenance for offshore installations
    .
    ? The average price has risen sharply and fluctuates widely, without losing the "magic" essence
    .
    ? Taking mainstream East China as an example, the market in 2016 basically fluctuated around the range of 7000-11000 yuan/ton.
    Especially from April to October, the domestic styrene market tended to be flat, running in the range of 7500-8500 yuan/ton for a long time.
    Throughout the year, there was only a substantial increase in the second half of February to the first half of March, and from November to the end of the year
    .
    ? But in only half a year in 2017, East China Styrene experienced a "roller coaster" market with a sharp rise and fall.
    The price difference between high and low reached 4,000 yuan/ton.
    It had a single-day increase of 1,400 yuan/ton, but it also experienced three months.
    A long period of weak callback
    .
    ? In the first quarter, a rare reverse arbitrage window for styrene from Asia to the United States opened, which drove a significant increase in exports in the first half of the year
    .
    ? As the main supply channel of Asian ocean-going goods, the United States continues to soar due to the failure of some devices and delays in restarting during the Spring Festival and after the holiday.
    Although the Asian market once followed up, it was due to insufficient buying and heavy selling, which caused the market to increase sharply.
    The callback has led to the opening of a rare reverse arbitrage window from Asia to the United States, which also led to a significant increase in China's styrene exports in the first half of the year.
    According to customs statistics, China's total styrene exports in the first half of the year reached 63,324 tons, setting a record for many years.

    .
    ? In the second quarter, the arbitrage window for some domestic mainstream styrene markets opened
    .
    ? In the second quarter, styrene refineries in Shandong and Hebei were concentrated in reducing and stopping production, including Tianjin Dagu, Qilu Petrochemical, Shandong Yuhuang, Yanshan Petrochemical, Qingdao Refinery, Shandong Lihuayi, Shandong Shengyuan and Dawang Huaxing.
    The sets of devices were shut down for overhaul at different time periods, and the local supply of goods was greatly reduced
    .
    In addition, due to the overhaul of individual large installations and shrinking imports in southern China and Guangdong, there was a tight supply situation in the second quarter.
    The arbitrage windows of the mainstream East China and Hebei, Shandong, and Guangdong markets were opened in stages, and certain supply transfers were added
    .
    ? The Ministry of Commerce formally initiated an anti-dumping investigation on imports of styrene originating in South Korea, Taiwan and the United States
    .
    ? The Ministry of Commerce of the People's Republic of China received Xinyang Technology Group Co.
    , Ltd.
    , Tianjin Dagu Chemical Co.
    , Ltd.
    , Jiangsu Lister Chemical Co.
    , Ltd.
    , Changzhou Donghao Chemical Co.
    , Ltd.
    , and Ningbo Keyuan Plastic Co.
    , Ltd.
    on May 25, 2017.
    The company and Shandong Shengyuan Petrochemical Technology Co.
    , Ltd.
    formally submitted an anti-dumping investigation application on behalf of the styrene industry in mainland China, and made an announcement on June 23 on the establishment of an anti-dumping investigation on imported styrene originating in South Korea, Taiwan and the United States.

    .
    The investigation started on June 23, 2017, and the investigation should normally be terminated before June 23, 2018.
    Under special circumstances, it can be extended to December 23, 2018
    .
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