Will Styrene Operating Rate Slip amid Losses?
As seen from the chart above, China’s styrene producers ran stably overall. The operating load rate declined sharply in February, when the public health event affected producers’ feedstock procurement and styrene sales and newly added units ran at lows in the early stage. With the control in the public health event, the logistics improved and the demand picked up. Accordingly, the styrene operating load rate gradually increased. However, the cash flow margin had been hovering at RMB 0/mt except during the public health event.
Most of the styrene producers enjoy a cost advantage. By comparison, the number and capacity of producers with all feedstock purchased take up less than 50% of the total.
