Market Overview - On January 19, the styrene market in East China saw an overall increase, with limited spot supply and export transactions boosting market sentiment. However, downstream purchasing at high prices was weak, leading to a decline in trading atmosphere. Traders were reluctant to sell, and external funds were tight, while the styrene industry remained profitable with positive forward sales [1][4]. Profitability - As of January 19, the profit for non-integrated styrene units was approximately 712 RMB per ton [2]. Supply and Demand - Styrene supply: As of January 15, the weekly production was 355,400 tons (a decrease of 300 tons), with an operating rate of 70.86% (a decrease of 0.06%) [3]. - Styrene inventory: As of January 19, the total port inventory in Jiangsu was 93,500 tons, down by 7,100 tons from the previous period. The commodity inventory was 58,900 tons, down by 1,000 tons [3]. - Downstream operations: As of January 15, the operating rates were 54.05% for EPS (an increase of 7.33%), 57.4% for PS (a decrease of 1.5%), and 69.8% for ABS (unchanged) [3]. Market Outlook - The recent export of styrene to Europe and new transactions to India have led to limited port inventory, resulting in a short-term tightening of supply and demand. However, there is strong resistance from downstream buyers at high prices, leading to overall weak terminal orders. EPS cash flow has been compressed, while some factories are operating well for pre-holiday stock production. ABS is facing significant losses, although downstream appliance companies have maintained reasonable order levels in January. Despite the short-term tightening, there are expectations of inventory accumulation before and after the Spring Festival, and the upward potential for styrene prices is limited. Although styrene profits have expanded significantly, the price difference between styrene and pure benzene has widened. The current driving force for styrene remains stronger than that for pure benzene, and a significant increase in supply or a larger reduction in downstream production would be needed to see a contraction in the price difference. The strategy suggests avoiding long positions in the short term and looking for short opportunities in EB03, while also monitoring high processing fees for potential contraction opportunities [4].

Market Overview - As of December 29, 2025, the port inventory of styrene in Jiangsu is 138,800 tons, a decrease of 500 tons compared to the previous period [1] - The spot market for styrene has continued to rise, with prices ranging from 6,680 to 6,900 CNY/ton; as of December 31, the price in Jiangsu reached 6,880 CNY/ton, an increase of 4.96% from the average price of 6,555 CNY/ton the previous Thursday [1] Production and Supply Dynamics - Last week, the restart of a 350,000-ton facility by Baolai and the shutdown of a 450,000-ton facility by Tianjin Bohua due to faults have led to an increase in styrene production and capacity utilization rates compared to the previous period [1] - The recent unexpected maintenance of facilities is expected to maintain a tight balance between supply and demand for domestic styrene in the short term, with visible inventory likely to continue decreasing [4] Institutional Insights - According to Zijin Tianfeng Futures, the styrene market has risen due to unexpected maintenance and export news, with low valuation and marginal positive factors gaining influence; however, the surplus of upstream pure benzene remains a major negative factor [3] - RD Futures notes that the geopolitical situation regarding the U.S. and Venezuela, as well as Russia and Ukraine, has not worsened recently, indicating limited upward pressure on oil prices; the supply-demand situation for pure benzene remains loose, providing limited support [4]