October Styrene Industrial Chain Output Climbs but Prices Slip
According to the data from October 2023, the overall industry chain saw an increment in output but a decline in prices, with only upstream benzene prices rising. Compared on a year-on-year basis, the upstream benzene supply witnessed the largest increase, whereas the supply of downstream PS and EPS increased the least. Regarding prices, the price decline of downstream PS, EPS and ABS prices was significantly greater than that of styrene and upstream products.
In terms of year-on-year changes in supply, the upstream supply of benzene experienced the biggest rise. This was mostly because the monthly output of phenol and caprolactam in the downstream markets of benzene increased quickly, which helped to support the significant growth in the supply of benzene. At the same time, the growth rate of downstream PS and EPS supply was the smallest, mainly related to the lukewarm end demand (the demand in the peak season was released in advance from July to August).
The reduction in downstream PS, EPS, and ABS prices, especially in ABS prices, was far bigger than that in styrene prices. This was mostly due to the fact that the new ABS capacity was growing at a far faster rate than PS and EPS. Simultaneously, the notable Y-O-Y decrease in ABS profits exacerbated the reduction in ABS prices.
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