According to China Plastics Online, the styrene market has recently been anything but calm. A sharp decline in port inventories directly ignited the market, while recovering U.S. blending demand boosted Asian aromatics, sending styrene prices into a continuous rebound mode. Earlier in the session, prices even surged to around 6,500 yuan/ton. However, futures began closing lower on November 18. Could this rebound be nearing its end?

On the cost side, OPEC's production increase plan is set to continue through year-end, likely maintaining the crude oil market's oversupply pattern. Fortunately, driven by market sentiment against internal competition and the recovery in overseas blending demand, recent futures have seen a temporary rebound. Yet geopolitical tensions between the U.S. and Venezuela may amplify market volatility.

Supply-demand fundamentals: Last week saw adjustments in operating rates for some industry facilities. Previously restarted units are increasingly releasing capacity, directly driving both styrene output and utilization rates higher month-on-month. Downstream demand shows mixed results: EPS operating rates dipped slightly, while PS, ABS, and styrene-butadiene rubber rates edged up.

Inventory-wise, factory-side stocks showed temporary accumulation, though port inventories in East China and Hainan continued their drawdown trend. Overall visible market inventories remain elevated. Profit margins exhibited significant divergence: non-integrated plants suffered heavy losses, while integrated plants saw margins recover to marginal profitability.

In summary, end-user demand has yet to signal clear improvement, and styrene lacks the capacity to drive a comprehensive recovery across ABS, PS, and EPS markets. This dynamic may repeatedly dampen the growth potential and sustainability of downstream demand.

Overall, the current supply-demand structure is expected to persist, with high inventory pressures requiring gradual drawdowns for relief.

As an integrated internet platform providing benchmark prices, on November 25, the benchmark price of ABS from SunSirs was 8,620.00 RMB/ton, a decrease of 5.74% compared with the beginning of the month (9,145.00 RMB/ton).

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