In the market for styrene monomer (SM) in China, both bullish and bearish factors are seen and future directions are uncertain. Crude prices, operating conditions for new SM facilities and the supply/demand balance for derivative products are expected to be factors affecting the market. As crude prices are volatile and COVID-19 is spreading again, manufacturing activities in the US and China are retreating. Under this situation, uncertainty over a recovery of the global economy is heightening. On the other hand, in the benzene market, a raw material for SM, prices weakened since supply is increasing along with the launch of new plants. Thus, raw material costs for SM are declining.

As for supply, facilities that had been suspended due to regular maintenance resumed operations from August and a 600,000 mt/year new SM plant operated by Gulei Petrochemical is scheduled to start up in August. Therefore, supply is expected to increase further. In addition, imports whose arrival was delayed due to typhoons are unloaded and SM stocks are building up in East China.

On the demand side, a low demand season is coming and several derivative products facilities are conducting regular maintenance. Thus, buying inquiries for SM are limited. These facilities, however, are scheduled to resume operations from August and demand is expected to recover going forward.