China’s styrene market rose sharply from October 9 to 15, 2026, driven by tightening supply, stronger post-holiday demand, and rising feedstock costs. The average weekly self-pickup price in Jiangsu reached RMB 11,337/ton, up RMB 988/ton week on week, or 9.55%.

Geopolitical tensions in the Middle East pushed oil prices higher, while tight spot availability of benzene strengthened cost support. Meanwhile, lower domestic production and continued destocking at Jiangsu ports supported styrene prices. Downstream operating rates recovered after the National Day holiday, driving a significant rebound in consumption across the PS, EPS, and ABS sectors. However, high raw material costs continued to weigh on downstream profitability, limiting buyers’ willingness to chase higher prices.

1. Rising Oil and Benzene Prices Strengthen Cost Support

The average weekly Brent crude oil price rose to USD 105.48/barrel, up USD 4.35/barrel, or 4.30%, from the previous week. Houthi attacks on Saudi oil facilities heightened concerns over Middle East supply disruptions, adding a geopolitical risk premium to oil prices.

Nevertheless, opposing market expectations and external pressure limited further gains, keeping crude oil prices volatile at elevated levels. Geopolitical developments remain a key factor, and oil prices could retreat if tensions ease and the risk premium diminishes.

In East China, the average weekly benzene spot price climbed to RMB 10,667/ton, up RMB 161/ton, or 1.53%, week on week. Refinery strategies favoring fuel production over chemicals reduced aromatics output, while limited imports further tightened supply. These factors supported benzene prices.

However, high feedstock costs continued to squeeze downstream margins. As losses mount, weaker demand from downstream industries could eventually limit further benzene price increases.

2. Lower Production and Falling Jiangsu Inventories Support Styrene Prices

Planned maintenance at several plants slightly reduced domestic styrene production, while inventories at major Jiangsu ports continued to decline. However, inventory accumulation in South China pushed total domestic inventories slightly higher, highlighting diverging regional supply conditions.

Weekly domestic styrene output fell to 318,300 tons, down 4,900 tons, or 1.52%, from the previous week. Capacity utilization dropped by 0.98 percentage points to 63.46%.

Maintenance at Tianjin Dagu and Shell facilities, along with operating-rate adjustments at other plants, contributed to the decline. Although processing margins improved somewhat, the industry remained unprofitable, limiting producers’ incentives to raise operating rates significantly. Import volumes also remained low.

As of October 12, sampled styrene inventories at Jiangsu ports fell to 39,600 tons, down 7,700 tons, or 16.28%, week on week. Outbound shipments significantly exceeded arrivals, accelerating destocking at major ports.

In contrast, inventory accumulation in South China lifted total domestic styrene inventories to 79,600 tons, an increase of 1,300 tons, or 1.66%, from the previous week.

3. Post-Holiday Demand Recovers, but Buyers Remain Cautious

Combined consumption of the three major downstream products—PS, EPS, and ABS—rebounded to 217,200 tons, up 29,900 tons, or 15.96%, from the previous period.

Downstream plants resumed operations after the National Day holiday, driving a substantial recovery in domestic consumption. However, high feedstock prices continued to pressure profit margins, and buyers mainly replenished inventories when prices dipped rather than actively pursuing further increases.

Styrene exports remained unchanged at 30,000 tons.

EPS: Capacity utilization rebounded to 56.04%, up 22.43 percentage points from the previous period. The average weekly price rose by RMB 1,095/ton, or 9.88%. Higher operating rates and rising raw material costs lifted finished-product prices and returned the sector to profitability. However, end-user resistance to high prices limited transactions largely to immediate demand.

PS: Capacity utilization fell to 35.50%, down 1.70 percentage points. The average weekly price increased by RMB 860/ton, or 8.25%, supported by stronger feedstock costs. Nevertheless, cautious purchasing led to a slight buildup in finished-product inventories, while losses narrowed modestly.

ABS: Capacity utilization edged down to 54.60%, a decrease of 0.60 percentage points. The average weekly price rose by RMB 392/ton, or 3.29%. Manufacturers attempted to pass on higher costs, but sluggish price transmission left the sector under substantial pressure. Trading activity for high-priced cargoes remained limited.

Overall, the post-holiday recovery boosted downstream consumption, but weak buying interest at elevated prices constrained further gains. Profitability also varied across downstream sectors, with ABS continuing to face particularly severe margin pressure.

4. Styrene Losses Narrow as Profitability Improves

The styrene-benzene price spread widened during the period, significantly reducing production losses for non-integrated styrene producers.

The average theoretical weekly loss for domestic non-integrated styrene plants narrowed by RMB 812/ton to RMB 431/ton. Despite this improvement, producers remained in negative-margin territory, limiting their willingness to increase operating rates substantially.

Downstream profitability also improved unevenly. GPPS losses narrowed slightly, EPS returned to profitability, and ABS losses eased but remained substantial. Much of the improvement came from lower operating rates and production cuts rather than stronger end-user pricing.

5. Outlook: Styrene Prices May Weaken from Elevated Levels

Styrene prices are expected to remain volatile, with downside risks increasing as supply recovers and restocking demand weakens.

Cost outlook: Middle East tensions may continue to support oil prices, although weak demand and external pressures could limit further gains. Any easing of geopolitical risks could trigger a correction in crude oil prices, reducing cost support for styrene.

Supply outlook: Domestic production is expected to increase slightly, while imports may recover, adding to supply pressure. However, continued destocking at Jiangsu ports and relatively low local inventories could provide some support to spot prices.

Demand outlook: The initial demand rebound following the holiday is losing momentum. Most downstream sectors continue to face margin pressure, limiting their ability and willingness to replenish inventories aggressively at high prices.

In summary, unless geopolitical tensions escalate further, China’s styrene market is likely to experience volatile trading at elevated levels, with prices facing downward pressure as supply increases and downstream restocking slows.