Following the start of February, previously idled plants resumed operations, with supply recovery becoming the market's primary focus. As the Spring Festival approaches, downstream enterprises are gradually shutting down for holidays, leading to persistently weakening demand for styrene. Overall, with no improvement in supply-demand dynamics, styrene prices are expected to maintain a weak oscillating trend.
Recently, the styrene 2603 contract halted its upward trend and turned downward, exhibiting a weak downward trajectory. Since February, influenced by the concentrated restart of domestic core plants and sluggish downstream consumption, the styrene market has entered a cycle of inventory accumulation. The supply-demand balance has shifted from the previous tight equilibrium to a relatively loose state. In the short term, it is difficult for the supply-demand situation to improve significantly, and styrene is expected to maintain a weak pattern.
Plants Resume Operations
In January, unexpected maintenance at some domestic styrene plants tightened supply. Beyond scheduled maintenance, multiple large-scale facilities—including Tianjin Bohua and Tangshan Xuyang—temporarily halted operations due to malfunctions. Industry operating rates remained near multi-year lows, with weekly rates dipping below 68% at times and monthly output growth narrowing year-on-year. Additionally, factors such as the opening of export windows, outflow of supplies, and tightening domestic spot circulation provided support for market prices.
However, entering February, previously idled plants gradually resumed operations, with supply recovery becoming the market's primary focus. Currently, Tianjin Bohua and Sinochem Quanzhou have restarted their combined 900,000-ton-per-year capacity, while Xinyang Technology's 300,000-ton-per-year facility plans to resume production after the Spring Festival. As of the week ending February 6, the national styrene operating rate rebounded to 69.96%, with weekly output reaching 350,900 tons. This represents a week-on-week increase of 0.68 percentage points and 0.98%, respectively, with operating rates in East China and South China regions rising first. This week's domestic styrene output is projected around 365,000 tons, with capacity utilization at approximately 73.5%, both showing improvement from last week.
From a capacity cycle perspective, minimal new capacity will enter the market in the first half of 2026. Supply elasticity will primarily depend on operating rate changes rather than new capacity additions, with the pace of plant restarts directly determining short-term supply levels. Regarding imports, domestic port inventories of pure benzene remained elevated in January-February, failing to significantly impact the market. Overall, domestic styrene supply is expected to gradually shift from tight to relatively loose conditions, with the supply increase from plant restarts becoming the core variable influencing the market.
Weak Restocking Sentiment
Styrene demand heavily relies on its three major downstream sectors: EPS, PS, and ABS. The combined effects of the Spring Festival off-season and negative profit feedback have suppressed demand. Prior to the holiday, styrene downstream industries entered a concentrated phase of reduced operations and shutdowns, with the weighted operating rate continuing to decline. According to Longzhong Information data, consumption by China's primary styrene downstream sectors (EPS, PS, ABS) reached 260,400 metric tons in the week ending February 6, marking a marginal weekly increase of 1,800 metric tons (0.70%). This week's aggregate demand from these three sectors is projected to range between 235,000 and 240,000 metric tons, indicating a decline in consumption. With the Spring Festival approaching, downstream enterprises are gradually closing for holidays, leading to persistently weakening demand for styrene. Raw material procurement is primarily driven by essential needs, with no proactive restocking activities observed.
On the profit front, poor cost pass-through to downstream sectors has exacerbated market weakness. The rise in styrene prices has failed to be effectively passed down the supply chain. ABS and general-purpose PS have fallen into losses, forcing enterprises to reduce production rates and cut output, further weakening styrene demand. Concurrently, end-user sectors like home appliances, packaging, and sheet materials entered their traditional off-season, heightening downstream sensitivity to raw material prices and reducing acceptance of higher costs.
Domestic styrene inventories declined by approximately 60,000 tons in January, with both East China port and factory stocks falling to low levels. These low inventories provided crucial support for both futures and spot prices. However, entering February, the market entered a restocking cycle, with port and factory inventories rising simultaneously. According to Longzhong Information data, as of February 2, 2026, Jiangsu's styrene port sample inventory totaled 108,600 tons, increasing by 8,000 tons weekly—a 7.95% rise. With social inventories accumulating and downstream raw material stockpiling nearing completion, support for styrene prices has noticeably weakened.
In summary, domestic styrene plants are gradually restarting, leading to a steady supply recovery. Concurrently, the approaching Spring Festival holiday is expected to reduce downstream demand, making it difficult for the domestic styrene supply-demand balance to improve. Against the backdrop of inventory accumulation, styrene futures prices are likely to maintain a weak trend.
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