Prompt domestic East China styrene inventory hits year-low

The domestic East China inventories for styrene reached a year’s low of 26,100 mt, as reported on Nov. 1 by S&P Global Commodity Insights. The last time inventories fell below this level was on Nov. 17, 2023, according to Commodity Insights data.

The highest level this year was 189,700 mt on March 8, Commodity Insights data showed.

Low inventories supported styrene prices from June to October 2024, sources said. The average price of prompt domestic styrene in June 2024 was Yuan 9,545/mt, compared to average prompt domestic benzene prices of Yuan 9,460/mt during the same period, reflecting an average spread of Yuan 85/mt, Commodity Insights data showed. The spread gradually widened to a high of Yuan 1,830/mt on Oct. 30, with an average spread of Yuan 1,378/mt in October.

Trading sources said the widening of the spread came as styrene prices have surged in recent months, driven by several key factors, including increased demand in the packaging and automotive sectors that has outstripped supply. Production disruptions due to maintenance and weather-related issues have also constrained styrene output, further elevating prices.

According to sources, the breakeven level for producers is when the styrene-benzene spread is around Yuan 1,000/mt, some distance away from current levels.

China is also home to the world's largest single producer of styrene monomer, Zhejiang Petrochemicals, which announced plans to turnaround some 1.8 million mt/year of styrene capacity in October earlier.