Styrene Market Faces Pressure Amid Cost Challenges and Weak Demand

Key Highlights

1. Stable Styrene Prices: Domestic and international Styrene Monomer prices remained mostly unchanged due to weak market sentiment.
2. Supply & Demand Dynamics: Weak downstream demand and rising benzene costs are impacting profitability, while supply remains stable despite planned maintenance.
3. Industry Developments: Major chemical plants, including Inner Mongolia Dongjing and Guangxi Huayi, are undergoing maintenance shutdowns, while BASF declared force majeure on nylon 6,6 production.
4. Market Outlook: Prices are expected to consolidate with no strong bullish signals; crude oil and benzene price trends remain key market drivers.

Current Styrene Prices: Domestic and Global Trends

• Imported Styrene Monomer in Kandla is currently priced at ₹96.5 per kg. 
• On the international front, Styrene Monomer prices were assessed lower at US$ 1,055 per MT on an FOB Korea basis. 
• Meanwhile, prices in the Asian market remained largely unchanged, reflecting minimal fluctuations due to a soft buying trend across the region.
• On Tuesday, FOB Korea Styrene Monomer (SM) prices remained stable at USD 1050-1060/MT, showing no change from Monday’s levels. 
• Similarly, CFR China SM prices were assessed at USD 1060-1070/MT, holding steady without any fluctuations compared to the previous day.

Supply & Demand Update: Key Market Influences

• The styrene market witnessed a marginal decline, influenced by fluctuations in crude oil prices, rising benzene costs, and sluggish downstream demand.
• On the supply side, port inventories remained high, though the growth rate of stock accumulation has slowed. 
• While some planned maintenance activities have been observed, such as Shandong LihuaYi’s 200,000-ton benzene plant maintenance, overall supply levels remain stable. 
• Additionally, Sinopec raised its benzene listing price by 100 RMB to 7,750 RMB/ton, further narrowing the price difference between benzene and styrene. 
• This increase in benzene prices has pushed up production costs, squeezing profit margins for styrene producers.
• On the demand side, the market continues to struggle with weak buying interest. The EPS (Expandable Polystyrene) sector is operating at lower production levels due to limited demand growth. 
• Similarly, the 3S (Styrene-Butadiene-Styrene) segment has not seen significant improvement in consumption, contributing to overall market stagnation. 
• Despite a gradual return of industrial activity post-holiday, the pace of demand recovery remains slow, keeping overall market sentiment bearish.

Chemical Industry News: Plant Shutdowns and Supply Disruptions

• Inner Mongolia Dongjing is preparing to shut down its butanediol (BDO) plants for maintenance on February 25, 2025. 
• The exact duration of the shutdown has not been disclosed. Located in Inner Mongolia, China, these plants have a production capacity of 280,000 MT per year.
• Meanwhile, Guangxi Huayi New Materials has halted operations at its propane dehydrogenation (PDH) plant in Qinzhou, Guangxi, China, as of February 10, 2025.
• The plant, which has a propylene production capacity of 750,000 MT per year, remains offline with no confirmed timeline for resumption.
• Additionally, BASF has declared force majeure (FM) on its nylon 6,6 supply from its unit in Ludwigshafen, Germany, effective January 31, 2025. 
• The facility, which has a production capacity of 100,000 MT per year, is facing supply constraints, though the duration of the force majeure remains uncertain.

Chemical Market Outlook: What to Expect in the Coming Weeks

• Styrene costs remain elevated due to rising benzene prices, while supply and demand fundamentals remain weak. In the short term, the market is likely to fluctuate and consolidate, with no strong bullish signals. 
• Prices may stabilize at current levels, but any unexpected changes in raw material costs or demand resurgence could impact market direction. Close monitoring of crude oil trends, benzene price movements, and downstream recovery will be crucial for assessing future market shifts.