Styrene Monomer Prices in China Register Continuous Surge Buoyed by Firm Upstream Prices

Styrene Monomer prices in China have continued to rise following substantial increment in the feedstock prices Ethylene and Benzene prices. The rise in crude oil values amidst the Russia-Ukraine tension has given no room for the petrochemicals manufacturers to ease prices. Petrochemical players have been struggling with volatile margins since past few months. The recent increment in crude values amidst muted demand for some chemical derivatives in China has further stressed the situation, compelling the manufacturers to keep prices firm to safeguard their margins.

As the overall local market remained muted in lieu of the Lunar holidays in China, this has pressurised the margins of downstream players in the near term. Since Styrene market economics remained poor, renowned and mega players like New Solar Chemicals announced a turnaround at its 300 KTA plant in Jiangsu with no hint of the resumption time. Another company, Tangshan Risun Chemical reduced its plant operating rates in Hebei province. The plant is expected to go for a maintenance turnaround in the coming days due to consistent operational glitch. Besides, Anhui Jianxi has also announced plans to implement a maintenance turnaround at its Styrene plant in coming February for nearly 15 days.

In China, local buyers have adopted a wait and see approach amidst consistent surge in Styrene values amid dwindling demand patterns. However, the offtakes have remained strong from the overseas market. Styrene monomer prices have thus surged due to volatile inventories and reduced production rates. Styrene prices in China have surged by nearly 5% since early January. As per ChemAnalyst, “Styrene prices in China are expected to continue tracing an upward trajectory till mid-February buoyed by the demand from the overseas market.”