Market Overview - On January 12, the styrene market in East China saw an overall increase, supported by limited port inventory and a quick recovery in industry profits, leading to stable operations of styrene units [1] - The spot price for styrene was reported at 7140-7220 CNY/ton for January, with a slight increase in the February and March contracts [1] Profitability - As of January 12, the profit for non-integrated styrene units expanded to approximately 634 CNY/ton [1] Supply and Demand - Styrene weekly production reached 355,700 tons as of January 8, with an operating rate of 70.92%, reflecting a slight increase [1] - As of January 12, the total port inventory of styrene in Jiangsu was 100,600 tons, a decrease of 31,700 tons from the previous period [1] - The operating rates for downstream products as of January 8 were 46.72% for EPS (up 3.08%), 58.9% for PS (down 1.5%), and 69.8% for ABS (down 0.1%) [1] Market Outlook - The short-term supply and demand for styrene remain tight, with port inventories continuing to decline and limited circulating goods, indicating strong price support [2] - However, there is significant resistance from downstream sectors due to losses, leading to a decline in EPS operating rates and reduced production focus for ABS and PS, with expectations of inventory accumulation around the Spring Festival [2] - The potential for a rebound in styrene prices is limited due to constrained cost support, and a cautious approach is recommended for short-term trading strategies [2]