Market Review of PS This Month

Figure 1: Daily PS Market Price Trend in East China, 2023-2025

In March, the focus of China's PS market shifted downward, affected by the fluctuating decline in costs and the market’s price reduction to deplete inventory. In terms of costs, the weakening of pure benzene led to the relatively weak fluctuation of styrene, and costs lacked effective support. In terms of supply and demand, both integrated and non-integrated PS facilities gradually resumed production, increasing the industry's supply pressure. However, the end of Europe’s restocking and the U.S.’s increased tariffs suppressed export orders for downstream enterprises. Affected by this, the supply and demand in the PS industry was relatively loose, and inventories accumulated against the trend, to a certain extent “forcing” the market to cut prices for sales.

2. Market influencing factors

In March, the focus of China's PS market shifted downward, influenced by fluctuating costs and market price reductions aimed at inventory clearance.

In March, the domestic PS market saw no new production facilities put into operation, with an annual production capacity base of 7.29 million tons.

Market Outlook

On the cost side, the wide balance expectation for pure benzene in April may drag down the price of styrene with a high probability of weakness. On the supply and demand side, the tightening of U.S. tariff policies poses challenges to downstream export profits, and the export demand in April may be difficult to reverse. Against the backdrop of historically high industry supply, relying solely on domestic consumption stimulus policies may not effectively change the trend of supply-demand easing, and the industry still faces high inventory pressure. It is expected that the PS market will show a weak trend in April.