Styrene Market Balances Amid Inventory Pressure and Seasonal Demand

Key Highlights

1. Styrene Price Updates: Domestic styrene price in China: 8,550 Yuan/MT (+30 Yuan/MT).
2. Demand and Supply Dynamics: Adequate supply coupled with pre-holiday stocking lifted transaction volumes.
3. Polymer News: Shanghai SECCO Petrochemical increased ACN prices by CNY 300/MT to CNY 12,000/MT.
4. Market Expectations: Supply pressure likely to increase due to higher port inventories.

Styrene Prices Edge Higher Despite Subdued Demand

• The domestic styrene price in China stands at 8,550 Yuan/MT, reflecting an increase of 30 Yuan/MT. 
• Internationally, styrene prices vary across regions:
  1. The CFR price in China was $1,050/MT, while in Taiwan it was $1,075/MT.
  2. The U.S. Gulf reported FOB prices at 49.78 cents/lb, and Rotterdam FOB prices reached $1,170.0/MT. 
  3. South Korea recorded FOB prices at $1,035/MT, whereas CFR prices in India were $1,055?MT as of January 17. 
• Meanwhile, Southeast Asia reported CFR prices of $1,080/MT on the same date. Imported styrene monomer at Kandla was priced at ₹95.5/kg.

Balancing Supply and Demand: Challenges in the Styrene Market

• The styrene market has experienced mixed dynamics recently, reflecting changes in both upstream and downstream factors. The market recorded a slight increase, supported by adequate on-site supply and pre-holiday stocking activities. 
• Despite international oil prices softening, the raw material costs provided moderate backing to the market. This balance between sufficient availability and temporary demand uplift from downstream segments contributed to acceptable transaction volumes.
• In the first week, the market exhibited a weaker trend. The rise in international oil prices offered support on the raw material front. However, increasing port inventories indicated ample supply in the market, while downstream demand struggled to gain momentum. 
• The subdued demand environment placed pressure on overall market performance, even as supply-side conditions remained stable.  

Global Polymer News: Maintenance Schedules and Price Updates

• Shanghai SECCO Petrochemical has raised the weekly prices of Acrylonitrile (ACN) in China by CNY 300/MT. The revised price stands at CNY 12,000/MT on an ex-tank basis, reflecting a continued upward trend in ACN pricing.
• Reliance Industries Limited (RIL) has announced plans to shut down its Purified Terephthalic Acid (PTA) unit in Kuantan, Malaysia, for maintenance in February 2025. The facility has a production capacity of 610,000 tons per year and the scheduled shutdown is part of routine upkeep to ensure optimal operational efficiency.
• The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation on imports of "Polyvinyl Chloride (PVC) Paste Resin" from the European Union and Japan. The investigation aims to determine whether these imports are being dumped and if they are causing material injury to the domestic industry.
• Hanwha Solutions is planning to shut its Polyvinyl Chloride (PVC) Lines on 24th February, 2025 for maintenance work. The Lines are located in Yeosu, South Korea with a total production capacity of all Lines are 460,000 Tons/Year. 

Cautious Fluctuations Ahead in the Styrene Market

• With port inventories likely to increase, the supply side might face heightened pressure in the short term. Downstream demand, while steady, remains insufficient to create significant upward movement in prices.  
• In the near term, market fluctuations will likely persist, driven by the interplay of moderate raw material support and seasonal stocking activities. A potential rebound in the styrene market could occur if inventory adjustments align with renewed demand. 
• Overall, the market is anticipated to remain in a phase of cautious fluctuation and consolidation over the short term.