In the China styrene monomer (SM) market, demand for derivatives was sluggish until first-half August. As a result, buying interest in SM retreated and the market was temporarily soft. At present, while feedstock costs remain high, SM makers are operating at low rates due to deteriorating profitability and stock levels have declined. In addition, with the crude oil market hovering high, both SM futures market and spot market are firm.

On the demand side, as the market for derivatives including polystyrene remains soft in China, the operation rates of derivative makers have been low. Meanwhile, for exports, there are inquiries from India and South Korea but buying interest is not as strong as in the period April to June.

SM facilities undergoing turnaround are scheduled to restart from September onward one after another. Therefore, the operation rates might rise to 70% or higher from September onward. The operation rates were said to be around 67% as of late August. Since transit through the Strait of Hormuz is banned and the arrival of Middle East cargoes is delayed, inventory levels at ports are difficult to determine. Under such circumstances, future supply/demand balance is uncertain.

Turnaround status of SM facilities is as follows.