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Styrene producers reduces output on persistent losses

2022-11-09 08:36:27 CCFGroup

Non-integrated styrene producers reduced output due to persistent losses. Coupled with turnarounds of several integrated units, overall supply was expected to decrease, lending supports to styrene price. In East China, styrene prices hover around 8,700yuan/mt recently.

Company	Location	Capacity,kt/yr	Turnaround/Status
Tianjin Dagu #1	Tianjin	500	t/a Sep 16, 50 days
Tianjin Dagu #2	Tianjin	450	cut to 70%
Sinopec Qilu	Shandong	200	cut to 80%
Yuhuang Chemical	Shandong	500	#1 may shut; #2 closed
Haoyuan Chemical	Anhui	260	cut to 60%
Jiaxi	Anhui	350	cut to 80%
New Solar	Jiangsu	300	shut in mid-Oct
BASF-YPC	Jiangsu	120	t/a end-Oct, 50 days
Sinopec Anqing	Anhui	100	t/a early Nov, 2 months
Sinochem Quanzhou	Fujian	450	50%, t/a in Nov, 2 weeks

Non-integrated units were mainly running at losses in the first half of 2022. Usually, non-integrated producers cut output when the loss reaches 700-800yuan/mt. The loss was around 200-300yuan/mt since early October. However, many producers cut output, leading to around an extra supply decrease of 20-30kt in October. On top of that, the November/December spread widened form 120yuan/mt to around 250yuan/mt.

Styrene port inventory would increase slightly with more transactions of import cargoes from the Middle East. Despite rapid depreciation of Chinese yuan, there is still no clear signs of surging styrene exports.

Although the supply-demand structure has improved, styrene inventory may still see slight increase in October-November. Satellite Petrochemical and PetroChina Guangdong Petrochemical are expected to commission their units in December, and the increment would be in 2023.

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