2024 China Styrene Industry Overview
In the past five years, China’s styrene market has shifted from a state of shortage to oversupply. In 2024, with limited new capacity, reduced operating rates of existing capacity, and policies boosting end demand, styrene prices overall showed an uptrend, especially in the second half of 2024.
As a mid-stream product linking upstream aromatics, olefins, and downstream plastics and rubber, styrene has seen improved support from upstream and downstream industries. After over three years of losses, companies have enhanced their risk resilience. The rapid development of refining and chemical integration has led to upstream capacity expansion outpacing downstream, causing initial upstream supply pressure to ease later. In 2024, styrene capacity expansion paused while downstream expansion continued, maintaining a tight supply.
2024 China Styrene Yearly Data
1. The styrene price in the Jiangsu market rose 9.52% YoY.
In 2024, Chinese styrene prices rose first and then fell. The cost and supply-demand dynamics dominated the market trend, with macro factors periodically impacting price fluctuations. Styrene prices increased in the first half of 2024, which was driven by cost and stronger-than-expected supply-demand fundamentals. Styrene prices declined in the second half of 2024 due to weak cost support, though the supply-demand fundamentals provided some bottom support. The annual average price of styrene in Jiangsu was RMB 9,210.65/mt, up 9.52% YoY, with the lowest point around RMB 8,250/mt in January and the highest at RMB 9,900/mt in May.
2. The industry profit decreased by 65.48% YoY.
In 2024, the profitability of the styrene industry chain improved, mainly reflected in the increased profits of the benzene, EPS, and PS sectors. The improvement in industry profits was closely tied to the better supply-demand structure. Benzene supply was tight throughout 2024, especially in the first half, driving continuous price increases across the industry chain and compressing downstream styrene profits. However, the downstream EPS and PS sectors, which had poor profits and low operating rates, experienced structural tightness, supporting prices and improving profit margins. In the second half of 2024, as benzene weakened and prices fell, downstream styrene profits improved. With the improvement in end demand, profits in the EPS and PS sectors rose notably in Q4, and the ABS sector briefly turned from loss to profit, though it remained in the red for the year.
3. The capacity increased by 1.58% YoY.
From 2014 to 2024, China’s styrene capacity continued to expand. In 2024, total styrene capacity grew to about 21,195kt, a 1.58% increase from 2023. Capacity growth rates over the past decade have shifted from relative stability to rapid growth and then a slowdown. Before 2019, styrene capacity growth was relatively stable. From 2019 to 2023, it was a high-speed expansion cycle, driven by refining and chemical integration projects and the sector’s earlier substantial profits. In 2024, due to industry losses, actual production fell short of expectations, slowing capacity growth. In terms of absolute capacity changes, only one new 470kt unit at Jiangsu Hongwei Chemical (including a C8 extraction unit) was added, while a 140kt capacity was phased out at PetroChina Jilin Petrochemical.
4. The downstream consumption volume increased by 1.08% YoY.
Styrene consumption in 2024 was expected to grow by 1.08% from 2023, marking the lowest growth rate in history. The slowdown was due to both the economic environment affecting end demand and the reduced capacity utilization from intensified competition during the expansion cycle. The main contributors to styrene consumption growth in 2024 were PS, EPS, and POP polyether, while other sectors remained flat or saw a decline in styrene consumption. Improved downstream industry profits also contributed to the increase in styrene consumption, primarily in the PS and EPS sectors.
SCI reckons a cautiously favorable outlook for China’s styrene market in 2025. The trend for styrene prices in 2025 may be higher in the beginning and lower towards the end, with an average price decline. Industry cycles suggest that styrene and downstream sectors will continue to expand, with downstream expansion expected to outpace upstream. Benzene will also continue to face a supply-demand imbalance, providing cost support. Styrene is expected to remain relatively strong, but caution is needed as downstream profits could turn negative during the expansion cycle, posing a risk of high-price declines.
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