Lead: During August 7–13, 2026, the center of domestic styrene market negotiations moved slightly lower. The weekly average spot price for self-pickup in Jiangsu was 8,593 yuan/ton, down 40 yuan/ton week-on-week, or 0.46%. During the period, US-Iran negotiations hit a deadlock, and renewed geopolitical risks in the Middle East pushed crude oil higher, providing some support on the cost side. However, after losses at domestic plants were repaired, operating rates and output were raised, causing supply pressure to rebound. Downstream demand was in the traditional off-season, with only limited recovery in end-user demand. Under the interplay of multiple factors, the market fluctuated with a weak bias. On the feedstock side, crude oil rose, but downstream finished products lacked momentum to follow higher, and styrene losses continued to narrow. Profit divergence across the industry chain remained pronounced.
The weekly average price of Brent crude rose to $86.33/barrel, up $1.98/barrel week-on-week, an increase of 2.35%. The US-Iran negotiations were deadlocked, with no consensus on the opening of the Strait of Hormuz, rekindling Middle East geopolitical supply risks and pushing up international oil prices, which provided cost support for styrene. However, crude oil fluctuated repeatedly, downstream follow-through buying was insufficient, and the cost-push momentum for styrene remained limited.
The weekly average spot price of pure benzene in East China was 7,592 yuan/ton, down 36 yuan/ton week-on-week, or 0.47%. Higher crude oil provided a positive, but after imported cargoes were delayed by typhoon disruptions, arrivals in the later period are expected to increase, limiting the upside for pure benzene. With crude oil and pure benzene moving differently, the cost side offered only temporary support for styrene and was unable to drive a sustained uptrend.
On the supply side, higher operating rates and port destocking coexisted. Incremental supply pressured prices, but inventory drawdowns underpinned the floor, leaving the market range-bound.
On the domestic supply front, weekly styrene output rebounded to 312,400 tons, up 9,700 tons week-on-week, or 3.20%. The industry capacity utilization rate rose to 62.29%, up 1.93 percentage points week-on-week. The Dushanzi unit, which completed its restart in the previous period, ran at full load, while some units that had previously cut operating rates raised theirs. The marginal recovery in losses lifted plants' willingness to operate, and domestic supply increased.
Regarding port inventories, arrivals of vessel-borne cargoes dropped significantly due to typhoon weather. The styrene sample inventory in Jiangsu stood at 84,800 tons, down 17.51% week-on-week; total national inventory was 118,800 tons, down 7.04%. During the period, withdrawals from storage areas exceeded arrivals, and ports continued to draw down inventories, providing floor support to spot prices. After the typhoon subsides, arrivals are expected to pick up, but withdrawals are expected to remain resilient, and inventories are still expected to see a slight drawdown.
In the current period, combined consumption by the three major downstream sectors (PS, EPS, ABS)—the "3S"—edged up to 232,300 tons, an increase of 1,100 tons week-on-week, or 0.48%. End markets remained in the traditional off-season, with only limited demand improvement. Downstream companies maintained small-lot purchases on an as-needed basis. Exports fell from 30,000 tons to 20,000 tons, dragging down overall demand to a certain extent.
Breakdown by product:
EPS: Capacity utilization fell to 49.99%, down 1.44 percentage points week-on-week. The weekly average price dropped by 180 yuan/ton, or 1.87%. Although the typhoon caused a temporary contraction in some local supply, downstream rigid demand was weak in the off-season, and profits shrank sharply to near zero.
PS: Capacity utilization rose to 45.00%, up 2.10 percentage points week-on-week. The weekly average price fell by 130 yuan/ton, or 1.45%. Feedstock prices fluctuated, downstream buyers were cautious, and PS losses widened further.
ABS: Capacity utilization edged down to 60.70%, down 0.20 percentage points week-on-week. The weekly average price rose slightly by 20 yuan/ton, or 0.20%. Producers were mired in deep losses and attempted to hold prices firm on news of plant maintenance, but actual end-market transactions were weak, and losses continued to widen.
Overall, downstream end demand recovered only mildly. Profitability across downstream products generally declined, and resistance to high-priced feedstock was strong, limiting the upside for styrene.
During the period, styrene losses improved further, but downstream profit pressure intensified. The theoretical weekly average profit for domestic non-integrated styrene units was -397 yuan/ton, improving by 51 yuan/ton week-on-week. Higher crude oil kept the styrene-pure benzene spread at a relatively high level, and the marginal improvement in producer losses encouraged some units to raise operating rates. However, downstream performance was bleak: PS losses widened, EPS profits were essentially exhausted, and ABS continued to suffer huge losses. Sustained pressure on downstream profitability suppressed restocking intentions, in turn constraining the release of styrene demand.
On the cost side, the US-Iran standoff remains, and Middle East geopolitical uncertainty persists. International oil prices are likely to stay elevated in the short term, providing a cost floor for styrene. However, if geopolitical tensions ease, there is a potential risk of a rapid pullback in oil prices. On the supply side, some units that had reduced operating rates earlier due to processing margins and equipment issues have room to modestly raise loadings, so domestic styrene output may increase. However, the planned maintenance of the Lihuayi unit could offset part of the increment from higher operating rates. Main-port inventories are expected to continue drawing down. On the demand side, there is some room for growth in consumption by major downstream sectors. Overall, in the next period, the styrene market may stay elevated following crude oil. But with downstream operating rates generally low and limited acceptance of high-priced feedstock, the upside for prices will be capped.
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