Lead: Recently, styrene prices have trended downward, driven by weakening costs and expectations of increased supply. However, towards the end of the week, prices stabilized and rebounded slightly, supported by a crude oil rally and restocking demand from downstream sectors. The domestic styrene market experienced an initial decline followed by a recovery. In Jiangsu, spot transactions ranged from a high-end price of 10,060 RMB/ton to a low-end price of 9,285 RMB/ton, resulting in a spread of 775 RMB/ton between the two extremes. For the upcoming period, styrene prices are expected to trade in a volatile but upward-biased range, primarily due to tight spot availability following concentrated downstream restocking.
Weakening Costs and Supply Expansion Expectations vs. Crude Oil Rally and Downstream Restocking Support
Recently, the domestic styrene market saw prices fall before recovering. Spot transactions in Jiangsu ranged from a high-end price of 10,060 RMB/ton to a low-end price of 9,285 RMB/ton, with a spread of 775 RMB/ton. During the early-to-mid part of this week, prices of crude oil and pure benzene weakened, providing insufficient cost support. Additionally, inventory levels at East China ports increased, coinciding with the restart of previously idled units, which strengthened market expectations for higher future supply. Under these dual pressures, holders were eager to sell, leading to continued weakening of spot basis levels. Market sentiment remained cautious with scarce buying interest, causing prices to drop. As prices reached low levels, crude oil stabilized, offering cost support. Meanwhile, essential restocking by some downstream users stimulated transaction activity. Buying interest picked up toward the end of the month, strengthening both spot and deferred-month basis levels, which led to a price rebound. Overall, styrene prices declined during the first half of the week due to weakening costs and supply expansion expectations, but stabilized and recovered slightly in the latter half, supported by the crude oil rally and essential restocking demand.
(Note: Image captions and data source lines regarding Figure 1 have been omitted as per instructions.)
Industry Supply Recovery and Phased Profit Improvement for Non-Integrated Units
During this period, the Tianjin Dagu Chemical styrene unit was restarted and returned to normal production capacity. Simultaneously, operating rates were increased at multiple facilities across Shandong, East China, and South China, with only minor reductions in load at a few units. Overall, the period saw a combination of unit restarts, load increases, and minor load reductions. The supply reduction caused by load cuts was significantly outweighed by the increase from restarts and higher operating rates, driving a slight simultaneous rise in total industry output and utilization rates. Domestic styrene producers generated a total output of 321,200 tons during this statistical cycle (November 6–12, 2026), an increase of 7,700 tons compared to the previous week (October 30–November 5, 2026), representing a week-on-week growth of 2.46%. The overall industry capacity utilization rate stood at 64.03%, a week-on-week increase of 1.52 percentage points.
(Note: Image captions and data source lines regarding Figure 3 have been omitted as per instructions.)
For the next statistical cycle (November 13–19, 2026), total domestic styrene output and overall industry capacity utilization are expected to rise slightly. Weekly total output is projected to be around 330,000 tons, corresponding to an average industry capacity utilization rate of approximately 66%. At the facility level, the incremental effect from units that recently increased their loads will continue. This is compounded by the ignition and startup of the CITIC Guoan styrene unit this week. Furthermore, the tightness in ethylene supply has eased somewhat, reducing the pressure on styrene unit operating rates. If the scheduled maintenance of Zhejiang Petrochemical’s POSM unit is further delayed, there may be additional room for industry output to expand. Key variables to monitor include: first, the risk of unplanned temporary shutdowns at domestic facilities; and second, potential proactive increases in operating loads by producers as processing margins continue to recover. Any realization of these scenarios could disrupt current output expectations.
Increased Downstream Off-take and Low-Level Port Inventory Rebound
As of November 9, 2026, the total sample inventory of styrene at Jiangsu ports stood at 37,600 tons, an increase of 6,900 tons from the previous period (November 2), representing a 22.48% rise. Commodity inventory amounted to 18,800 tons, an increase of 4,200 tons from the previous cycle, representing a 28.77% rise.
From November 2 to November 8 (a 7-day period), domestic vessel arrivals increased slightly. Total styrene arrivals at Jiangsu social inventory sites (including vessels, pipeline deliveries, and truck offloading) amounted to 34,950 tons (including one vessel currently unloading this morning). Compared to the same period last year, arrivals totaled 35,500 tons over 7 days. Off-take during this period was 28,500 tons, compared to 40,000 tons in the same period last year.
(Note: Image captions and data source lines regarding Figure 4 have been omitted as per instructions.)
For the period of November 9–15, 2026 (7 days), based on current market information, inbound replenishment volumes at major East China ports are expected to remain around 30,000 tons, indicating a relatively steady arrival pace. On the demand side, downstream users are primarily consuming contracted orders. Essential demand remains stable, and styrene consumption is expected to hold steady without signs of significant volume increases. Considering both inbound and outbound flows, if off-take volumes do not increase further within the cycle, port inventories may see a slight upward trend. However, the increment will be limited, and inventory levels will remain in the lower range compared to historical periods.
Styrene Outlook: Volatile but Upward Bias Expected Next Period
Styrene prices are expected to trade in a volatile but upward-biased range in the coming period, primarily driven by tight spot availability following concentrated downstream restocking. On the cost front, mediators such as Qatar are continuing to push for US-Iran negotiations, while the US has downplayed expectations of renewed strikes on Iran. Consequently, concerns over supply risks have eased, reducing geopolitical support for oil prices. Regarding supply and demand, port inventories remain at low levels. After concentrated downstream restocking, spot circulation volumes have decreased, providing stronger support for spot and near-month prices. From a fundamental perspective, industry supply continues to recover, with the Dagu restart and increased loads at certain units, alongside expected output from Guoen. However, seasonal slow-down effects in downstream sectors cast doubt on aggressive buying momentum, likely limiting the extent of any rebound. The mainstream spot transaction range is expected to reference 9,500–10,200 RMB/ton.
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