Huatai Futures: High Port Inventory of Pure Benzene, Domestic Operating Rate Declines

Regarding pure benzene, port inventories remain high, while domestic pure benzene operating rates have started to decline from high levels, with attention on refinery restructuring and maintenance. After maintenance of South Korean cracking units, focus is on the progress of easing South Korean pure benzene shipping pressure. Downstream operating performance is decent, with phenol and adipic acid operating rates slightly declining from high levels, aniline operating rates remaining high, and only caprolactam operating rates staying low. There are still maintenance plans for styrene in March. As for styrene, port inventories continued to rise midweek, but domestic styrene maintenance is still planned for March, with concentrated maintenance in Europe and the US in April, and some inventory reduction is still expected. Downstream rapid resumption of work, especially EPS, which has quickly rebounded, with EPS inventories being low, facilitating smooth inventory reduction; PS inventory pressure has temporarily eased, with operating rates rising from low levels; ABS inventory pressure has further decreased, with operating rates waiting to rise further; the three major hard plastics have quickly increased prices, with previous production losses being somewhat recovered. (Huatai Futures)