Escalating military tensions between the US and Iran have raised concerns regarding crude oil supply risks, driving WTI and Brent crude prices up by more than 5% at one point. Driven by the restart and increased operating load of the Xinpu Chemical plant, styrene production rose 1.88% week-on-week to 313,900 tonnes, and the capacity utilization rate increased by 1.16 percentage points to 62.58%. Operating rates among downstream sectors generally declined; combined consumption of EPS, PS, and ABS fell 2.71% week-on-week to 243,700 tonnes. Factory inventories rose 9.11% to 164,400 tonnes, while inventories at East China and South China ports fell 14.96% and 27.27% to 39,800 tonnes and 16,000 tonnes, respectively.

Units that underwent major maintenance earlier in September are successively restarting and ramping up production, and with limited scheduled shutdowns ahead, the industry operating rate is expected to maintain an upward trend. End-market performance remains lackluster, with no signs yet of the traditional peak season. Production margins for the downstream "Three S" products (PS, EPS, and ABS) remain low; downstream enterprises are likely to limit purchases to essential needs, resulting in stagnant demand for styrene.

A slight accumulation of styrene inventory is expected in September. Given the recent rise in oil prices, market participants should closely monitor geopolitical developments between the US and Iran.

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