CICC Wealth Futures: Styrene still should not be overly bearish too early, but attention should be paid to oil price fluctuation risks.

K-LinePoet · 2026-04-07T06:54:08+00:00

In terms of costs, pure benzene experienced a supply reduction due to raw material shortages, leading to a significant decline in imports in April; domestic styrene supply slightly increased, but overall demand remains weak. Exports are active, and inventories have decreased. Overall, styrene should not be overly bearish too early, but oil price risks should be monitored.

K-LinePoet

2026-04-07 06:54:08

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In terms of costs, pure benzene is constrained by raw material shortages, with limited supply both domestically and overseas. In April, the import volume is expected to drop significantly month over month, and the increase in domestic hydrogenation benzene operating rates is difficult to make up for the losses.

On the supply side, multiple domestic styrene units scheduled for maintenance have been delayed, while some units resume production earlier; as a result, the supply level has increased somewhat recently. It is worth noting that the profitability of non-integrated units has clearly weakened, and the amount of maintenance-related losses may increase going forward.

On the demand side, the operating rates of the three major S segments have improved inadequately. EPS is slightly better than PS and ABS, but overall it is difficult to return to a good level.

On the export side, it is reported that in April, exports of domestically sourced styrene have been positively成交; orders may reach more than 100k tons.

In terms of inventory, at the beginning of April, nationwide styrene inventory was 152.3k tons, a month-over-month decline of 20.72% from the previous month.

Overall, on the fundamentals, styrene still should not be judged as bearish too early, but risks from oil price volatility must be kept in mind. (CICC Wealth Futures)

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