Chan Ye Xin Xi Wang·2025-06-26 01:18Industry Overview - Styrene, with the chemical formula C8H8, is a widely used organic compound in the chemical industry, primarily for producing synthetic resins and rubber [1][2] - The domestic styrene industry in China has entered a phase of rapid capacity expansion since 2020, driven by increasing downstream demand and national industrial policies [5][9] - By 2024, China's styrene production capacity is projected to grow from 9.554 million tons in 2019 to 22.735 million tons, making China a major player in the global styrene market [5][9] Production Capacity - The highest styrene production capacity in China is concentrated in the East China region, accounting for 46% of the total capacity, followed by North China (21%) and Northeast China (18%) [7] - Despite ongoing capacity expansion, the profitability of non-integrated styrene production facilities has declined since December 2019, leading to reduced market interest and a slowdown in capacity growth [5][9] Import and Export Dynamics - In 2024, China's styrene imports are expected to decrease by 48.44% year-on-year to 407,600 tons, marking a historical low in import dependency at 2.55% [11] - Styrene exports are projected to decline by 32.39% year-on-year to 247,400 tons in 2024, primarily due to weak overseas demand and tighter domestic supply [11][9] Competitive Landscape - Major players in China's styrene industry include Rongsheng Petrochemical (11% market share), China National Offshore Oil Corporation (9%), and Shanghai Secco (5%) [13][15] - The overall market concentration remains low, with the top seven companies (CR7) accounting for only 39% of the total production capacity [13] Future Trends - Production costs for styrene are expected to be influenced by the prices of pure benzene and ethylene, with a projected decrease in price support due to increased domestic production and lower demand [19] - Downstream demand for styrene is anticipated to remain resilient, driven by sectors such as home appliances and electric vehicles, although traditional markets face challenges [20] - The industry is likely to see increased consolidation and a shift towards integrated production models, enhancing competitiveness among leading firms [21]