Styrene Weekly Report | Costs first strengthened and then weakened, port lifting market

Introduction:

In the fourth week of August 2026, the styrene market came out of the highs and fell, and the average weekly spot price in Jiangsu recorded 9138 yuan/ton, a month-on-month increase of 3.76%. Crude oil prices rose first and then fell during the week, and the cost-side support showed a trend of strength at first and then weakness; although domestic demand did not see a significant improvement, the export side performed well, effectively filling the gap in domestic demand. At the same time, inventory at the main port in Jiangsu has fallen sharply, and spot circulation has tightened, providing a relatively solid bottom support for prices.

1. The expected disturbance of crude oil is increasing, and the cost-side driver is strong at first and then weak.

Figure 1 Weekly WTI and Brent futures price comparison chart in 2026 (USD/barrel)

This week, the weekly average price of Brent crude oil rose to US$91.35/barrel, a month-on-month increase of US$1.54/barrel, or 1.71%. At the beginning of the week, driven by the geo-risk premium, oil prices performed strongly. Later, the market sent signals that the United States and Iran may restart negotiations, and the situation in the Middle East was expected to ease in stages. Oil prices fell back in response, and formed an obvious inverted V pattern during the week. Overall, although the weekly average price increased month-on-month, the cost-end drive for styrene only remained at the short-term support level and lacked sustainability.

Figure 2 Weekly pure benzene spot price comparison chart in East China in 2026 (yuan/ton)

The pure benzene market fluctuated simultaneously with oil prices, and spot prices in East China also rose first and then fell. Domestic pure benzene supply is gradually recovering, coupled with obvious downstream resistance to high prices, spot follow-up is weak, pure benzene"s upward space is limited, and the cost driving force for styrene has weakened.

2. Domestic output rebounded slightly, and port inventories plummeted to provide bottom support.

Figure 3 China’s weekly styrene production and capacity utilization trend chart (10,000 tons)

The supply side shows a differentiated pattern of internal growth and external tightness. This week, the weekly output of styrene rose to 313,900 tons, an increase of 5,800 tons from the previous month, and the industry operating rate increased to 62.58%, an increase of 1.16 percentage points from last week. The main reason is that the Xinpu chemical plant has resumed full-load operation, and some enterprises that have reduced production in the early stage have moderately increased their burdens. However, it should be pointed out that the industry as a whole is still in a state of loss, the theoretical profits of non-integrated devices are still negative, companies are not very willing to increase their burdens on a large scale, and there is limited room for subsequent production growth.

Figure 4 Comparison of weekly pickup and arrival volume of styrene in Jiangsu reservoir area from 2025 to 2026 (10,000 tons)

In terms of ports, as of the weekend, there were only 68,800 tons of inventory left in Jiangsu"s main port, and the weekly destocking rate was as high as 31,000 tons. Arrival volume continues to be low, while the pace of picking up goods remains stable, resulting in rapid depletion of inventory. The current spot circulation is already at a low level, which has a strong bottom-up effect on styrene prices. It is expected that the arrival volume will pick up slightly next week, but as the willingness of downstream buyers to purchase at low prices still exists, the inventory depletion trend is likely to continue moderately.

3. Exports are making up for weak domestic demand, and downstream profits are clearly differentiated.

The total consumption of the three main downstream industries (EPS, PS, ABS) in this period dropped to 243,600 tons, a month-on-month decrease of 6,700 tons, or 2.75%. Terminal sectors such as home appliances, packaging, and automobiles are still in the off-season for consumption. Domestic demand is flat, and downstream purchases mostly maintain rigid needs. Exports have become the highlight of the demand side this week, with styrene exports increasing by 10,000 tons month-on-month to 40,000 tons, effectively hedging the impact of weakening domestic demand.

Look at varieties:

EPS: The operating rate dropped to 48.21%, down 1.78 percentage points from the previous month. The price of finished products followed the increase in raw materials, but terminal orders were light and transaction follow-up was insufficient.

PS: The operating rate increased slightly to 45.60%, a month-on-month increase of 0.60 percentage points. After the price increase, downstream resistance increased, and the actual trading volume was weak.

ABS: The operating rate fell back to 58.60%, down 2.10 percentage points from the previous month. News of some equipment maintenance boosted manufacturers' price support mentality, but high prices inhibited transactions, and no substantial improvement was seen on the demand side.

Overall, it is difficult for domestic demand to improve significantly in the short term, and exports are still the biggest variable on the demand side; the profits of most downstream varieties are under pressure, and their acceptance of high-priced raw materials is limited, which in turn restricts the upper space of styrene.

4. Styrene losses have been restored, but downstream profits are mixed.

Figure 5 Weekly profit changes of styrene and major downstream companies from 2022 to 2026 (yuan/ton)

The theoretical weekly average profit of non-integrated styrene units this week was -471 yuan/ton, a decrease of 87 yuan/ton from last week. The rise in the average price of crude oil has widened the price difference between styrene and pure benzene, and the profit pressure on the production end has eased. This is also the main reason why some companies choose to slightly increase their burden.

In terms of downstream profits, GPPS"s losses further deepened, EPS losses narrowed slightly, and ABS still maintained a relatively large loss. Overall, the downstream profit environment is still not ideal, and companies" willingness to replenish their inventories is low, which has inhibited the demand for styrene to a certain extent.

5. Short-term outlook: There is support under pressure, and the shock pattern is difficult to break. Introduction:

In the fourth week of August 2026, the styrene market came out of the highs and fell, and the average weekly spot price in Jiangsu recorded 9138 yuan/ton, a month-on-month increase of 3.76%. Crude oil prices rose first and then fell during the week, and the cost-side support showed a trend of strength at first and then weakness; although domestic demand did not see a significant improvement, the export side performed well, effectively filling the gap in domestic demand. At the same time, inventory at the main port in Jiangsu has fallen sharply, and spot circulation has tightened, providing a relatively solid bottom support for prices.

1. The expected disturbance of crude oil is increasing, and the cost-side driver is strong at first and then weak.

Figure 1 Weekly WTI and Brent futures price comparison chart in 2026 (USD/barrel)

This week, the weekly average price of Brent crude oil rose to US$91.35/barrel, a month-on-month increase of US$1.54/barrel, or 1.71%. At the beginning of the week, driven by the geo-risk premium, oil prices performed strongly. Later, the market sent signals that the United States and Iran may restart negotiations, and the situation in the Middle East was expected to ease in stages. Oil prices fell back in response, and formed an obvious inverted V pattern during the week. Overall, although the weekly average price increased month-on-month, the cost-end drive for styrene only remained at the short-term support level and lacked sustainability.

Figure 2 Weekly pure benzene spot price comparison chart in East China in 2026 (yuan/ton)

The pure benzene market fluctuated simultaneously with oil prices, and spot prices in East China also rose first and then fell. Domestic pure benzene supply is gradually recovering, coupled with obvious downstream resistance to high prices, spot follow-up is weak, pure benzene"s upward space is limited, and the cost driving force for styrene has weakened.

2. Domestic output rebounded slightly, and port inventories plummeted to provide bottom support.

Figure 3 China’s weekly styrene production and capacity utilization trend chart (10,000 tons)

The supply side shows a differentiated pattern of internal growth and external tightness. This week, the weekly output of styrene rose to 313,900 tons, an increase of 5,800 tons from the previous month, and the industry operating rate increased to 62.58%, an increase of 1.16 percentage points from last week. The main reason is that the Xinpu chemical plant has resumed full-load operation, and some enterprises that have reduced production in the early stage have moderately increased their burdens. However, it should be pointed out that the industry as a whole is still in a state of loss, the theoretical profits of non-integrated devices are still negative, companies are not very willing to increase their burdens on a large scale, and there is limited room for subsequent production growth.

Figure 4 Comparison of weekly pickup and arrival volume of styrene in Jiangsu reservoir area from 2025 to 2026 (10,000 tons)

In terms of ports, as of the weekend, there were only 68,800 tons of inventory left in Jiangsu"s main port, and the weekly destocking rate was as high as 31,000 tons. Arrival volume continues to be low, while the pace of picking up goods remains stable, resulting in rapid depletion of inventory. The current spot circulation is already at a low level, which has a strong bottom-up effect on styrene prices. It is expected that the arrival volume will pick up slightly next week, but as the willingness of downstream buyers to purchase at low prices still exists, the inventory depletion trend is likely to continue moderately.

3. Exports are making up for weak domestic demand, and downstream profits are clearly differentiated.

The total consumption of the three main downstream industries (EPS, PS, ABS) in this period dropped to 243,600 tons, a month-on-month decrease of 6,700 tons, or 2.75%. Terminal sectors such as home appliances, packaging, and automobiles are still in the off-season for consumption. Domestic demand is flat, and downstream purchases mostly maintain rigid needs. Exports have become the highlight of the demand side this week, with styrene exports increasing by 10,000 tons month-on-month to 40,000 tons, effectively hedging the impact of weakening domestic demand.

Look at varieties:

EPS: The operating rate dropped to 48.21%, down 1.78 percentage points from the previous month. The price of finished products followed the increase in raw materials, but terminal orders were light and transaction follow-up was insufficient.

PS: The operating rate increased slightly to 45.60%, a month-on-month increase of 0.60 percentage points. After the price increase, downstream resistance increased, and the actual trading volume was weak.

ABS: The operating rate fell back to 58.60%, down 2.10 percentage points from the previous month. News of some equipment maintenance boosted manufacturers' price support mentality, but high prices inhibited transactions, and no substantial improvement was seen on the demand side.

Overall, it is difficult for domestic demand to improve significantly in the short term, and exports are still the biggest variable on the demand side; the profits of most downstream varieties are under pressure, and their acceptance of high-priced raw materials is limited, which in turn restricts the upper space of styrene.

4. Styrene losses have been restored, but downstream profits are mixed.

Figure 5 Weekly profit changes of styrene and major downstream companies from 2022 to 2026 (yuan/ton)

The theoretical weekly average profit of non-integrated styrene units this week was -471 yuan/ton, a decrease of 87 yuan/ton from last week. The rise in the average price of crude oil has widened the price difference between styrene and pure benzene, and the profit pressure on the production end has eased. This is also the main reason why some companies choose to slightly increase their burden.

In terms of downstream profits, GPPS"s losses further deepened, EPS losses narrowed slightly, and ABS still maintained a relatively large loss. Overall, the downstream profit environment is still not ideal, and companies" willingness to replenish their inventories is low, which has inhibited the demand for styrene to a certain extent.

5. Short-term outlook: There is support under pressure, and the shock pattern is difficult to break.

Looking ahead to the market outlook, the cost side remains the biggest source of uncertainty. If the U.S.-Iran negotiations make actual progress, the geopolitical premium will subside, which will drive oil prices back down and styrene cost support will weaken; conversely, if the situation repeats again, oil prices may still rise.

At the supply level, some installations have raised their inventory or restarted plans, and domestic production is expected to increase, but the loss pattern will form a natural constraint on the operating rate. Port inventories are running at low levels and are difficult to accumulate quickly in the short term, and will continue to play a supporting role. On the demand side, it will take some time for domestic demand to recover, and export orders remain the focus.

Based on comprehensive judgment, if there is no sudden geopolitical stimulus, styrene is likely to maintain a weak and volatile trend in the short term; however, low inventory and downstream replenishment at dips will form a bottom line of defense, and the space for price correction is limited. Periodic rebound opportunities are still worthy of attention.

Looking ahead to the market outlook, the cost side remains the biggest source of uncertainty. If the U.S.-Iran negotiations make actual progress, the geopolitical premium will subside, which will drive oil prices back down and styrene cost support will weaken; conversely, if the situation repeats again, oil prices may still rise.

At the supply level, some installations have raised their inventory or restarted plans, and domestic production is expected to increase, but the loss pattern will form a natural constraint on the operating rate. Port inventories are running at low levels and are difficult to accumulate quickly in the short term, and will continue to play a supporting role. On the demand side, it will take some time for domestic demand to recover, and export orders remain the focus.

Based on comprehensive judgment, if there is no sudden geopolitical stimulus, styrene is likely to maintain a weak and volatile trend in the short term; however, low inventory and downstream replenishment at dips will form a bottom line of defense, and the space for price correction is limited. Periodic rebound opportunities are still worthy of attention.