SunSirs: Styrene Port Inventory in the Second Half of 2025 Shows Differentiated Performance Compared to Previous Years

Looking at the 2025 terminal inventory trend, styrene prices first rose then fell in the first half of the year. In the second half, they rebounded sharply before ending with fluctuating declines—a pattern markedly different from previous years.

With China's complete surplus pattern now established, styrene imports have plummeted in recent years, barely replenishing major East China ports and exerting negligible influence on inventory trends. Key factors influencing inventory fluctuations now include: operational status of major domestic plants, shifts in cargo flows driven by regional supply-demand disparities, vessel arrival schedules, and downstream consumption rates. Additionally, export volume transactions exert temporary impacts on domestic supply-demand dynamics, which partially feed back into inventory trends.

Looking at the 2025 terminal inventory trend, the first half will see an initial rise followed by a decline, while the second half will experience a significant rebound before ending with fluctuating declines—a pattern markedly different from previous years.

In Q1, styrene entered its traditional inventory accumulation phase. Industry operating rates surged significantly, and vessel arrivals at major East China ports remained elevated. However, major downstream enterprises faced weak new order intake, and demand recovery fell short of expectations, leading to consecutive substantial inventory buildups at ports. Inventories peaked at 190,100 metric tons in early March.

From mid-March through the second quarter, East China ports experienced rapid inventory drawdowns. This was driven by two factors: gradually improving downstream demand accelerating terminal pickups, and multiple styrene plants concentrating their production cuts and shutdowns. Industry operating rates plunged to around 68%-70% in April-May, significantly reducing vessel arrivals in East China. Additionally, coordinated export shipments contributed to consecutive weeks of substantial inventory drawdowns, with stocks falling to 54,100 tons by mid-May.

In the third quarter, styrene inventories surged substantially. As previously idled plants gradually restarted, industry operating rates rebounded to the year's peak of slightly above 80% in July-August, leading to a significant increase in port arrivals. Concurrently, downstream demand entered its seasonal slump. Compounded by regional price competition, port withdrawals contracted markedly. The supply-demand imbalance intensified, leading to substantial port inventory pressure. Stocks repeatedly exceeded 180,000 tons in August and September.

In the fourth quarter, port inventories consolidated at elevated levels before declining gradually. Specifically, from November to December, supported by multiple major styrene plants shutting down, industry operating rates dropped sharply to annual lows. However, overall downstream demand remained robust. Additionally, reduced production or shutdowns at some neighboring styrene plants accelerated port pickups. The dual effect of reduced supply and increased pickups led to significant port destocking, with inventories fluctuating around 130,000 tons in mid-to-late December.

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