The Chinese Styrene market in January 2025 has seen mixed price movements, with weekly trends showing changing market dynamics. As per the market assessment by ChemAnalyst, during the third week, Styrene prices rose slightly by 1%. This followed a sharp drop of about 3% in the previous week, prior to which the prices remained stable. This rebound indicates a cautious recovery amidst fluctuating market conditions.

The decline in Styrene prices earlier in the month is due to increased supply in the domestic market. Increasing inventory levels at key ports further intensified the situation. Market participants reported an accumulation of significant volumes of Styrene inventory at East China’s main ports by the first week of this month.

Styrene price decrease is further driven by the restart of major production units, such as Zhejiang Petroleum & Chemical’s 600,000-ton capacity units. The resumption of operations has added to the market’s excess supply, pressuring prices downward. In addition, bearish demand from downstream industries, particularly Acrylonitrile Butadiene Styrene (ABS), has limited recovery prospects for Styrene prices this month.

Despite these conditions, the reduction in prices have increased some restocking demand ahead of the Lunar New Year celebrations. Traders and manufacturers are taking advantage of this opportunity to secure raw materials at reasonable costs. This has provided limited support to Styrene prices. Expanded Polystyrene (EPS) and Polystyrene (PS) sectors have shown moderate growth in production rates, offering a sigh of hope for the market.

In contrast, downstream performance in the ABS segment remains average, with cautious buying sentiment prevailing. Many industry participants are holding back due to uncertainty in global economic conditions. Rising energy costs have also impacted production and profitability, adding to the challenges faced by the market.

Looking forward, Styrene prices in China are expected to stabilize in the near future, with market participants anticipating a moderate recovery. This depends on downstream demand and inventory adjustments. As the Lunar New Year approaches, demand fluctuations could further influence the market trajectory. External factors such as feedstock availability and global market trends will also play a significant role in shaping Styrene price movements in the coming months.

January 2025 is a challenging period for the Chinese Styrene market. Forecasts by ChemAnalyst indicate potential recovery in the months ahead, with prices expected to rise modestly by February by almost 2%. Increased downstream demand, particularly from the packaging and automobile sectors, and a gradual reduction in inventory levels at major ports will drive this trend. By March and April, tightening global Styrene supplies and higher feedstock costs could further support price increases. Market participants should monitor changing global supply chain dynamics and adjust strategies to benefit from the expected demand growth in the months to come.