Styrene prices have been declining amid lower benzene costs and sluggish demand

The styrene prices in China declined recently, primarily driven by falling upstream benzene prices and weakening downstream demand. International crude oil price fluctuations further contributed to the downward pressure, creating a bearish sentiment across the market. The drop in benzene prices, a key raw material for styrene production, eroded cost support, while subdued buying interest from downstream sectors exacerbated the price slump.

On the supply side, the styrene market saw some tightening as several producers entered planned maintenance shutdowns in April, leading to reduced operating rates. However, this supply constraint was overshadowed by persistently weak demand. Downstream industries, particularly those producing styrene-butadiene rubber (SBR), polystyrene (PS), and ABS/SAN resins (collectively referred to as 3S) faced high inventory levels, prompting factories to prioritize destocking over new purchases. This lack of demand-side support offset any potential price stabilization from supply reductions.

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The situation ahead also doesn’t seem to be stable or promising to the trajectory of styrene prices and are anticipated to stay vulnerable. Unstable benzene prices and potential tariff policy changes add to the volatility. While the ongoing maintenance season may provide temporary support by limiting supply, the overall weak demand outlook is likely to keep prices under pressure. In the near term, styrene prices are expected to remain subdued, with any upward movements contingent on a sustained rebound in benzene costs or a meaningful improvement in downstream demand.