Sep 19, 2023
China's domestic styrene production reached a historical high of about 1.24 million tons in July, and the supply continues to increase in August with the completion of routine maintenance, despite the delayed startups of new units. However, styrene prices have remained elevated compared to pre-Spring Festival levels. Port inventories have also dropped to historically low levels. The startups of styrene-integrated downstream units in recent years have lowered conventional operational costs and driven the consumption of styrene.
From the beginning of the year until now, the styrene industry has generally been profitable. Particularly during the Chinese New Year period in January and February, factories managed to recoup the profits lost over the past five months through hedging with futures and pre-sales. The overall profitability has been slightly better than in 2022. Additionally, within the integrated production process, profits from benzene have also helped turn around styrene production's losses, ensuring stable operations in the styrene industry this year. Amid industry-wide maintenance in June, domestic production saw a slight decline. However, as the maintenance units resumed operations, domestic production in July reached a historical high level. It's anticipated that domestic production in August will set a new historical record.