China’s June Styrene Exports Fell M-O-M and Y-O-Y on Narrowing Overseas Supply Gap
With the return of overseas maintenance units, the foreign output loss caused by maintenance in June decreased by 28.9% M-O-M. The shrinkage of the supply deficit constrained China’s styrene exports correspondingly. In July, the overseas market is in the off-demand season, and China’s coastal factories have seen an M-O-M drop in their exportable resources. Therefore, the styrene exports in July are projected to post declines as well.
In June 2024, China exported 48.1kt of styrene, down 35.44% M-O-M and 3.91% Y-O-Y. The average export price was $1,163/mt. The cumulative export volume in the first half of 2024 fell by 3.79% compared to the same period last year.
According to the data of the GACC, China’s styrene exports in June mainly went to South Korea, Turkey, Ecuador, etc. Among them, 46.5kt were exported to South Korea, accounting for 96.63% of the total export volume in June, and the export volume to other countries decreased M-O-M. For one thing, the styrene plants currently shut down in South Korea account for about 35% of its total styrene production capacity, leaving a certain supply gap. For another thing, multiple styrene plants in the Americas have restarted, narrowing the local supply gap.
In June, the largest quantity of styrene was exported by Zhejiang-based enterprises, with approximately 19.1kt, accounting for 39.71% of the total export volume, an increase of nearly 10 percentage points compared to the previous month. Shandong-based enterprises exported approximately 15.2kt, accounting for 34.65% of the total export volume, an increase of 11 percentage points compared to the previous period. Jiangsu-based enterprises exported about 9kt, accounting for 18.69% of the total export volume, an increase of 10 percentage points from last month. In addition, the proportion of exports in Tianjin decreased by 4 percentage points compared to last month, mainly due to the unplanned shutdown of styrene factories in Tianjin.
In June, China’s styrene exported by general trade was about 33.1kt, accounting for 68.93% of the total export volume, a decrease of 15% compared to the previous month. The styrene exported via the processing trade of imported materials was 14.9kt, accounting for 31.07% of the total export volume, an increase of 19 percentage points compared to last month.
In June, China imported approximately 14.8kt of styrene, with an average import price of $1,178.47/mt. The import volume increased by 186.64% M-O-M and decreased by 83.28% Y-O-Y. Styrene imports mainly come from Saudi Arabia, which were mainly based on the feedstock contracts with downstream factories. The cumulative import volume in the first half of 2024 decreased by 73.55% Y-O-Y, mainly due to the frequent shutdowns and maintenance of overseas facilities, and the delayed opening of the import arbitrage window.
In July, some styrene units in the United States were shut down or experienced load cuts affected by hurricanes. The output losses of overseas plants may increase by around 25kt compared to June, and the supply gap may slightly widen. However, overseas demand is in the off-season, and at the same time, the exportable volume of Chinese coastal factories has also decreased compared to June. As a result, the export volume in July is anticipated to decrease compared to June at around 24kt. In terms of imports, the arbitrage window remains closed, and it is expected that imports will remain comparatively stable.
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