Lead: Supply cuts in May failed to offset weak demand, and insufficient cost support dragged down styrene prices. As the low-demand predicament is expected to persist into June, coupled with anticipated weakness in crude oil and feedstock costs, market sentiment is poor. The June market is expected to consolidate with price declines.

In May, the domestic styrene market saw price declines. According to market insights, the domestic styrene trend in May was largely a volatile downward movement. The main reason was that geopolitical conflicts could no longer drive the market upward. The US-Iran entered unstable negotiations, and crude oil and petrochemical raw materials shifted into a volatile channel. The cost side of styrene had bottom-line support, but effective unilateral drivers weakened. Additionally, the rigid demand support in the styrene market was only average, while spot demand remained quite sluggish. With bearish factors dominating the market, styrene prices fell. By the end of May, Jiangsu styrene prices dropped below the average level of the same period in the past six years.

Data source: chempricehub

Table 1: Comparison of styrene price changes (yuan/ton)

| Regional Market | April 30 | May 29 | Change | Change % |
| :--- | :--- | :--- | :--- | :--- |
| Jiangsu Spot (Ex-works) | 10280 | 8965 | -1315 | -12.79% |
| South China Spot (Delivered) | 10420 | 9210 | -1210 | -11.61% |
| North China Spot (Delivered) | 10025 | 8905 | -1120 | -11.17% |
| Shandong Spot (Ex-works) | 9950 | 8800 | -1150 | -11.56% |

Data source: chempricehub

According to market intelligence, downstream demand in the styrene market in May remained primarily rigid, with spot demand continuously poor. Looking at downstream production capacity utilization rates, overall downstream output of styrene in May was weak. Among main downstream sectors in May, the highest weekly capacity utilization rate was 63.31%, while the lowest was 20%, maintaining low demand inhibition on the styrene market overall. The overall weighted capacity utilization rate for styrene in May was around 54.58%, down 0.96% from the April weighted figure. The destocking progress in the styrene market was slow in May. Low demand weighed on the market, combined with crude oil factors, leading to a relatively significant price decline in styrene during May.

Data source: chempricehub

In May, production and sales profitability mostly weakened, and a resonance of high costs and low demand is expected to continue into June. Current information suggests that planned maintenance volumes in June may be slightly lower than in May. As of May 29, according to incomplete statistics from chempricehub, domestic styrene plant outage losses in June are tentatively expected to be around 434,000 tons, slightly lower than the outage losses in May.

Furthermore, current market information indicates that domestic downstream demand in June may temporarily fluctuate slightly, with no effective pressure from increases or decreases. This provides partial rigid demand support. However, the weak spot demand is expected to extend into June.

Table 2: Summary of some styrene plant maintenance schedules in June

| Company Name | Capacity (10,000 tons) | 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 |
| Daqing Petrochemical | 10 | 2026/4/1 | To be determined | Planned Maintenance |
| ZPC Ethylbenzene Dehydrogenation | 60 | 2026/5/9 | 2026/6/8 | Planned Maintenance |
| Zibo Junchen | 50 | 2026/5/12 | 2026/6/11 | Planned Maintenance |
| Northeast Bora | 35 | 2026/5/15 | 2026/6/14 | Planned Maintenance |
| Shenghong Petrochemical | 45 | 2026/5/28 | 2026/8/28 | Planned Maintenance |
| Zhenhai LyondellBasell | 62 | 2026/5/30 | 2026/6/30 | Planned Maintenance |

Data source: chempricehub

Overall Outlook:

• Crude Oil: The situation in Iran may see further easing, and the passage conditions through the Strait of Hormuz could face substantial improvement, weakening support for oil prices. Crude oil is expected to consolidate weakly in June, which is bearish for petrochemical market sentiment.

• Benzene: Benzene prices in East China in June are expected to fall initially and then rise, with an overall weak trend. The price range is expected to be between 7,500-8,000 yuan/ton. Continuous attention needs to be paid to downstream profit recovery progress, supply-side changes, and trends in related markets like crude oil.

• Ethylene: Ethylene markets at home and abroad are expected to continue their weakness in June, but the downside potential may narrow. Considering the overall supply and demand fundamentals, ethylene prices are likely to remain weak. The East China ethylene price range is expected to be around 7,600-7,800 yuan/ton. On the import front, domestic demand for US dollar-denominated foreign market volumes is difficult to improve, and foreign currency prices are also expected to fall, with the operating range potentially around 930-1,030 USD/ton.

• Styrene (Self-side): On the supply side, affected by plant maintenance, styrene production is expected to contract further. On the demand side, production and sales profitability for some downstream products is improving, so output in June may increase slightly. Overall rigid demand is acceptable, but spot demand performance is poor. Additionally, exports are expected to decrease subsequently, providing limited overall demand support. The supply-demand gap is expected to narrow somewhat in June.

In summary, styrene itself lacks effective unilateral drivers. Against the backdrop of anticipated bearish costs, the styrene market is expected to experience volatile declines in June. The operating range for Jiangsu spot prices is projected at 8,800-9,400 yuan/ton.