SunSirs: The Styrene Market Saw a Weak Decline Last Week (June 22–26)

Price trend

According to the SunSirs commodity analysis system, the styrene market weakened and declined last week; the average price fell from 7,870 RMB/ton on June 22 to 7,490 RMB/ton on June 26, representing a drop of 1.83% over the period and an 8.26% decline year-on-year.

Market analysis

Macroeconomic overview: International crude oil futures closed higher on June 25. The settlement price for the August contract of U.S. WTI crude oil futures was $71.92 per barrel, up $1.58 or 2.2%. The settlement price for the September contract of Brent crude oil futures was $75.50 per barrel, up $1.63 or 2.2%.

Cost side: Benzene prices are trending downward. With the easing of geopolitical risk premiums and a continuous decline in oil prices, feedstock costs for chemicals have collapsed. Meanwhile, market confidence regarding demand remains weak, and sentiment leans toward pessimism. Although expectations for inventory drawdown persist for June, the return of overseas units following earlier maintenance has alleviated supply tightness; however, non-integrated production units for certain grades are operating at a loss, and negative feedback from the demand side continues to weigh on market sentiment.

Supply and Demand: Large domestic units undergoing maintenance are gradually restarting, and the industry operating rate has rebounded from low levels to approximately 70%. End-user demand has entered the off-season, and the digestion of downstream finished-product inventories remains slow; production of key downstream products—ABS and EPS—may decline, reflecting an overall weak supply-demand landscape.

Styrene External Market: On June 25, styrene market prices in Asia fell by $15/tonne. The closing price on an FOB Korea basis was $985–$995/tonne, while the closing price on a CFR China basis was $970–$980/tonne.

Market outlook

With the geopolitical risk premium receding and costs shifting downward, styrene supply is easing; consequently, the market is expected to see weak, fluctuating performance in the near term.

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