Introduction: Entering May, the styrene market exhibited a weakening of cost support driven by geopolitical conflicts, while the impact of low demand within the supply-demand logic grew. Theoretical production profits shrank, and although there was an increase in styrene production unit maintenance in mid-to-late May, the market lacked sufficient rebound momentum, leading to price declines in the styrene market during the month.
The domestic styrene market in May saw a consolidation with price declines. According to market information, the domestic styrene price trend in May was largely volatile and downward. The main reason was that geopolitical conflicts failed to further drive market gains. The US-Iran entered unstable negotiations, crude oil and petrochemical raw materials shifted into a volatile channel, and the cost side provided bottom support for styrene. However, effective one-sided drivers weakened. As the influence of the cost side diminished, the impact of its own supply-demand fundamentals increased.
Data source: chempricehub
Table 1: Styrene Price Change Comparison (yuan/tonne)
| Regional Market | April 30 | May 22 | Change | % Change |
|---|---|---|---|---|
| Jiangsu Spot (ex-works) | 10,280 | 9,515 | -765 | -7.44% |
| South China Spot (delivered) | 10,420 | 9,735 | -685 | -6.57% |
| North China Spot (delivered) | 10,025 | 9,400 | -625 | -6.23% |
| Shandong Spot (ex-works) | 9,950 | 9,350 | -600 | -6.0% |
Data source: chempricehub
Crude oil and feedstock prices remained at a high level during the period, providing both support and pressure on styrene costs. Market information indicates that downstream demand for styrene in May was mainly for essential needs, with spot demand continuing to be weak. Looking at capacity utilization rates of downstream users, overall output was relatively low. In May, the weekly capacity utilization rate for the main downstream sectors peaked at only 63.31%, while the minimum was around 20%, creating a low-demand constraint on the styrene market. Meanwhile, the overall capacity utilization rate for styrene production in May was around 69.2%. The destocking process in the overall styrene market was slow, which was bearish for the market. Consequently, styrene prices experienced volatile declines in May.
Data source: chempricehub
With high costs and weak demand, styrene market prices fell, and theoretical production and sales profits for styrene generally decreased. According to statistics from chempricehub, looking at the average theoretical profit since the beginning of May for various styrene producers, profits for integrated units and POSM units declined, with POSM turning from profit to loss. Although the losses for non-integrated units narrowed, the numerical data shows that production and sales profitability remains unfavorable.
Table 2: Domestic Styrene Unit Theoretical Production & Sales Profit Comparison (yuan/tonne)
| Production Unit | April Average | Current May Average | Change | % Change |
|---|---|---|---|---|
| Integrated Unit | 1,616 | 866 | -750 | -46.41% |
| Non-integrated Unit | -555 | -411 | +144 | +25.95% |
| POSM | 621 | -253 | -874 | -140.7% |
With weakened production and sales profits, coupled with high costs and multiple low-demand factors, the number of styrene production units undergoing maintenance increased in May, including more unplanned shutdowns. Additionally, there are reports that some units originally scheduled for maintenance in August are considering advancing their plans. This could provide supply-side support through short-term production cuts. Current market information suggests that downstream demand may stabilize temporarily with minor fluctuations, with no effective pressure from volume reductions, offering some support to the market.
Table 3: Summary of Partial Styrene Unit Maintenance in May
| Company Name | Capacity (10,000 tonnes) | Start Date | End Date (Estimated) | Remarks |
|---|---|---|---|---|
| Zhenhai LyondellBasell | 62 | 2025/9/24 | 2026/6/30 | Planned maintenance |
| Fujian Gulei | 60 | 2026/3/7 | 2026/6/15 | Planned maintenance |
| CNOOC Dongfang Petrochemical | 12 | 2026/3/25 | 2026/5/7 | Planned maintenance |
| Daqing Petrochemical | 10 | 2026/4/1 | TBD | Planned maintenance |
| Jilin Petrochemical | 32 | 2026/4/15 | 2026/5/15 | Planned maintenance |
| Zhejiang Petroleum & Chemical POSM | 60 | 2026/4/25 | 2026/5/3 | Fault-related maintenance |
| Zhejiang Petroleum & Chemical EB Dehydrogenation | 60 | 2026/5/9 | 2026/6/8 | Planned maintenance |
| Sinochem Quanzhou | 45 | 2026/5/11 | 2026/5/18 | Fault-related maintenance |
| Zibo Junchen | 50 | 2026/5/12 | 2026/6/11 | Planned maintenance |
| Changzhou Xinyang | 30 | 2026/5/12 | 2026/5/31 | Unplanned maintenance |
| Shandong Yulong | 50 | 2026/5/12 | 2026/5/27 | Fault-related maintenance |
| Northeast Baolai | 35 | 2026/5/15 | 2026/6/14 | Planned maintenance |
| Zhenhai LyondellBasell | 62 | 2026/5/30 | 2026/6/30 | Planned maintenance |
Data source: chempricehub
Overall, the styrene market is expected to show a slight firming consolidation towards the end of May. Crude oil is anticipated to decline slightly, but overall prices remain at a high level without qualitative change. Pure benzene continues to provide bottom support for styrene. On the supply-demand front, domestic styrene output is expected to decrease. In addition, rigid downstream demand is expected to increase slightly by the end of May. Styrene export shipments remain healthy with no effective imports. There are expectations of destocking at styrene production enterprises and major ports. Furthermore, potential procurement for month-end delivery settlements will provide some support to boost the market. It is forecasted that the styrene market will consolidate with a slight upward bias by the end of May, with Jiangsu spot prices trading in the range of 9,400-9,800 yuan/tonne. Looking at the overall styrene market in May, the significant impact of low demand led to bearish trading sentiments, with prices declining compared to the April market performance.
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