Styrene Port Inventory Hits a 10-year High in Aug
In August, the main port inventory of styrene exhibited a pattern of initial decline followed by accumulation, with the accumulation primarily occurring in the latter half of the month.
As of August 27th, the total styrene inventory at East China’s main ports reached 187.5kt, setting a new ten-year historical high for the same period and approaching the seasonal inventory levels typically seen during the Spring Festival.
Due in part to downstream demand being off-season and some downstream producers being able to meet their production needs through long-term contracts, the cargo withdrawal rate at major ports during July and August was among the lowest in the previous three years. This created only a slight supply gap in the spot market.
Additionally, styrene prices at nearby factories around the port are relatively low, and the price gap between ex-works prices and port prices is gradually widening. As a result, downstream users primarily source from surrounding styrene producers.
The inventory accumulation in September is expected to slow down initially and then accelerate. This week’s cargo arrival is approximately 33.5kt, and the second week of September is also expected to see limited arrivals. Consequently, inventory buildup is anticipated to slow in the first two weeks of September, with a gradual increase in accumulation in the latter half of the month as vessel arrivals increase.
By the end of September, port inventories are projected to reach around 220kt. In the fourth quarter, styrene supply is expected to continue increasing, with ongoing inventory buildup anticipated. Therefore, the warehouses may limit the quantity of goods stored.
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