China's April styrene import hits all-time low

China's styrene monomer import hit the all-time low in April 2022. According to China Customs, China imported 45.9kt of styrene in April, down 92.9kt or 66.9% from March, and down 68.6kt or 59.9% year on year. In the first four months of 2022, styrene imports totaled 432.5kt, down 187.2kt or 30.2% from the same period last year.

China's styrene imports have decreased since 2020 with the capacity expansion in China domestic market, particularly in 2021. China domestic styrene capacity increased by 31% year on year in 2021 and output increased by nearly 19% with the startups of integrated units.

Meanwhile, downstream demand also weakened since March, and the operating rate of styrene downstream units went lower in April. The weakness continued in May and by last Friday, the operating rate of PS, EPS and ABS unit was 66.6%, 60.9% and 90%, respectively.

In addition, China's styrene exports are gradually increasing. In April, the export volume totaled 10kt. Looking ahead, exports are likely to cool down with the restarts outside China domestic market. As for imports, given ample supply in domestic market, the import volume is likely to keep low in short term.