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[PS Daily Review] Sharp Drop in Styrene Drags on Market, Overall Trend Weakens and Declines

Plastmatch 2026-06-15 17:40:45

I. Today's Summary

East China GPPS spot prices were lowered by RMB 100 to RMB 9,600/mt, while upstream styrene prices fell sharply across all regions, with declines in a single region approaching RMB 300, causing rapid weakening in cost-side support.

Domestic PS prices diverged across grades. Mainstream grades in East China generally softened with discounts, while some grades in South China remained stable. Overall trading sentiment was weak, with downstream buyers purchasing only small volumes on a need-to-have basis.

Industry units are increasing and reducing operating rates in parallel. The Dushanzi and Anhui units are scheduled for maintenance, and some production lines are running at reduced loads, leading to a slight short-term decline in output. Weekly operating rates and corporate inventories are both expected to decrease.

The weakening of crude oil, combined with a sharp drop in raw materials, is suppressing market sentiment. There is no significant improvement in demand, and under the stalemate of supply and demand, the market is maintaining a weak consolidation trend.

II. Spot Overview

(1) Prices of different grades across various regions diverged and declined

Ningbo Saibao Long GPPS has been lowered by 100 yuan to 9600 yuan/ton; Yuyao HIPS has slightly decreased by 50 yuan to 10450 yuan/ton. The South China market shows stronger resistance to declines, with Renxin GPPS prices remaining unchanged at 8750 yuan, while Xinghui HIPS has dropped by 50 yuan to 8680 yuan. Overall, the market's negotiation focus has shifted downwards, and there are significant discrepancies between buyers and sellers.

The sharp drop in raw material prices has fueled a spread of pessimism, prompting holders to take the initiative to offer discounts to boost transactions, while high-priced supplies are finding it difficult to be absorbed. End-user industries such as home appliances and daily necessities are maintaining off-season production schedules, with no willingness to replenish inventories in large volumes. Transactions are concentrated in low-price, just-in-time orders, and overall market volume remains difficult to expand.

(II) Styrene Costs Declined Significantly

Styrene prices have plummeted across the board, with East China dropping by 295 yuan to 8,275 yuan/ton, and South China and Shandong also experiencing a simultaneous decline of 300 yuan. The significant drop in raw material costs has directly breached the original cost bottom line for PS, becoming the core reason for today's spot market decline.

III. Production Dynamics

There were many adjustments in industry unit operations, and overall output contracted slightly. The Dalian, Zhanjiang, Lvyan Qingfeng, Shantou, and Lianyungang units increased load and resumed production; the Quanzhou unit was briefly shut down and has not yet restarted; the Huizhou, Zhangjiagang, and Zhoushan units operated at reduced load; the Tianjin and Anhui units were shut down for maintenance; and the Dushanzi unit is scheduled for maintenance in mid-June.

The output increase from offsetting maintenance shutdowns and reduced-load units has boosted production incrementally, but overall industry supply has not expanded significantly. This week’s data show that capacity utilization is expected to edge down to 46.9%, while corporate inventories have also declined slightly, easing supply pressure to a limited extent, though not enough to reverse the weak market trend caused by sluggish demand.

4. Price Forecasting

1. Overall Forecast for Short-Term Market Trends

The short-term PS market continues to show a weak consolidation trend, with downward momentum persisting and insufficient impetus for a significant rebound.

Suppressive factors: Crude oil and styrene continue to decline, weakening cost support, and market sentiment is heavily bearish; downstream terminal demand remains sluggish with no signs of improvement, and procurement is only maintained at levels needed for immediate production, with no concentrated replenishment benefits; traders have a strong willingness to offload to avoid risks, which suppresses the market.

Supporting factors: Multiple units are undergoing maintenance or operating at reduced loads, leading to a slight short-term decline in industry output; corporate inventories have edged lower, with no risk of large-scale inventory buildup; supply of some tight grades remains limited, restricting the room for prices to fall sharply.

2. Mainstream Price Operating Range

Short-term domestic PS overall operating range: 9,400–10,400 yuan/ton. In East China, mainstream GPPS is 9,500–9,650 yuan/ton, and HIPS is 10,350–10,500 yuan/ton; in South China, GPPS remains stable at a low level of 8,700–8,800 yuan/ton.

3. Risk Warning

If crude oil rebounds quickly and drives styrene to stop falling and rally, PS cost recovery may briefly stabilize the market; if multiple maintenance units restart intensively, the increase in supply will expand the downside. This analysis is only a fundamental projection and does not constitute trading or investment advice.

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[PS Daily Review] Sharp Drop in Styrene Drags on Market, Overall Trend Weakens and Declines

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