August Styrene Market Fluctuates and Declines in China

August 29 update

According to the commodity analysis system, the styrene market in August experienced a fluctuating decline. The average price at the beginning of the month was 7,646 CNY/ton, and by the end of the month, it had dropped to 7,550 CNY/ton, with a monthly price decrease of 1.26%. At the beginning of the month, due to the restart of a plant in Northeast China, a small output from a new plant in Shandong, and some load adjustments in plants in East China and South China, the factory capacity utilization rate fell to 77.73%, a decrease of 1.19% compared to the previous period. This supply-side support led to a slight increase in styrene prices. With decent styrene profits, some plants restarted, and new capacities were commissioned, leading to an increase in production. The operating rates of downstream industries showed mixed trends. EPS inventories were high, and with the off-season demand, the operating rate significantly decreased. The operating rates of the ABS and PS industries slightly increased, but overall, there was a trend of decreasing demand. Under the weak fundamentals, the styrene market in August fluctuated and declined.

Figure: P-value Curve for Styrene Products