【Styrene Market's Main Contradiction Will Revolve Around the Game Between Raw Material Cost Support And Deteriorating Fundamental Expectations 】  On June 9th, CICC Wealth Futures released a report indicating that the geopolitical fluctuations in crude oil have led to international crude oil prices leading the chemical sector, stimulating a halt and rebound in the styrene market as Israel and Gaza resumed mutual bombings, putting the fragile ceasefire at risk. However, on the other hand, the supply-demand balance of styrene itself shows a clear trend of tightness in the near term and looseness in the long term. In the short term, maintenance at Zhenhai Linde and Shenghong Petrochemical has caused the domestic styrene operating rate to remain at a yearly low of 64.1%. Yet, market attention has shifted to the resumption and increase in production expected in mid to late June, with a relatively clear expectation of loose supply in the long run. Downstream off-season negative factors continue to manifest, with operating rates for EPS, PS, and ABS at 44%, 49%, and 58.7% respectively; corporate orders are weak, finished product inventories remain high, and terminal demand shows no marginal improvement. Additionally, the narrowing styrene supply gap in Asia has significantly reduced domestic export orders, with export contract volumes halving from late May to June. In summary, the main contradiction in the styrene market will revolve around the interplay between raw material cost support and deteriorating fundamental expectations, limiting the rebound potential and making a smooth one-sided rally unlikely.

【$7.7 Billion Total Investment! 1.25 Million Tons/Year Polyethylene Project 】Recently, the Silleno polyethylene project in Atyrau, Kazakhstan, has successfully commenced construction. The project has a total investment of 7.7 billion USD, with a designed annual production capacity of 1.25 million tons of polyethylene, and is planned to be completed and put into operation by 2029. Once operational, the project will meet 90% of Kazakhstan's domestic polyethylene market demand, with products also being exported to markets in Europe, China, and other regions. This project is a landmark for the deepening pragmatic cooperation among China, Russia, and Kazakhstan in the high value-added petrochemical industry. The implementation and construction of this project further consolidates Second Chemical Engineering Construction Corporation’s overseas engineering achievements and adds another outstanding result to its overseas market layout.