China’s styrene market trended lower this week on falling costs and soft demand. Factory inventories rose 17.57% week-on-week to 158,900 tonnes, while weekly output edged up 1.13% to 313,500 tonnes at 62.51% capacity utilization. Downstream EPS and PS prices fell sharply, and ABS turned lower mid-week as feedstock slumped. Next week, styrene is expected to stay range-bound with a weak bias, with spot prices seen at 10,000-11,000 yuan/tonne. Our styrene (SM) product range serves EPS, PS and ABS producers.
Inventory and Output
As of November 5, 2026, China’s sample styrene factory inventory stood at 158,900 tonnes, up 23,700 tonnes from the previous cycle, a week-on-week increase of 17.57%. Total domestic styrene output for the period October 30 to November 5 was 313,500 tonnes, up 3,500 tonnes from the prior week (October 23-29), a week-on-week rise of 1.13%. Overall industry capacity utilization was 62.51%, up 0.70% week-on-week.
EPS: Prices Fall Sharply
EPS prices fell sharply during the period October 30 to November 5. Easing geopolitical tensions and a steep drop in crude oil, combined with a slight build in styrene port inventories, sent styrene prices sharply lower, greatly weakening cost support; EPS prices followed suit. Demand was weak, and with bearish sentiment evident in the EPS market, downstream buyers showed little willingness to build positions, mostly sticking to just-in-time purchases, and trading activity remained subdued. According to Longzhong Information, Jiangyin EPS ordinary-grade averaged 12,017 yuan/tonne this week, down 3.56% week-on-week, while flame-retardant grade averaged 12,517 yuan/tonne, down 3.42% week-on-week.
PS: Market Falls on Feedstock Slump
The domestic PS market fell this week, with low-priced offers frequently appearing, some at 7,500-10,500 yuan/tonne. Crude oil and feedstock prices plunged this week, weighing on feedstock supply and bearish for the market. On the cost side, expectations that the US-Iran conflict may cool weakened concerns over supply risk, and crude and styrene fell sharply, reducing cost support for PS. On the supply-demand side, downstream demand was low, industry margins recovered somewhat, some plants increased or cut production, and supply rose slightly. Some grades remained tight, partly cushioning the decline. The domestic PS market was bearish, with prices adjusting lower. According to Longzhong Information, as of November 5, 2026, East China GPPS 1050 was assessed at 10,850 yuan/tonne and HIPS 750 at 11,500 yuan/tonne.
ABS: Higher Early, Lower Mid-Week
During the period October 29 to November 5, domestic ABS prices first rose and then fell. Early in the week, sharp gains in feedstock prices supported ABS costs, making a steep decline unlikely and pushing prices slightly higher in some regions. Mid-week, feedstock prices plunged, but ABS prices held relatively firm due to low channel inventories. From Tuesday, as the Democrats won the midterm elections and the risk of a large-scale US-Iran conflict receded, geopolitical support for oil prices weakened; benzene and styrene hit limit-down in succession, greatly reducing cost support for ABS, and styrene and isooctyl ester prices fell sharply, spreading caution through the market.
Styrene Outlook for Next Week
Styrene is expected to remain range-bound with a weak bias next week, mainly dragged by falling costs.
Cost Side
International oil prices are expected to have room to fall next week, with WTI at $81-91/bbl and Brent at $87-97/bbl. The Democrats’ midterm election win and the reduced risk of a large-scale US-Iran conflict have weakened geopolitical support for oil, leaving prices under downward pressure.
Supply Side
Port inventories remain low. Supply increases will come from shipments after the restart of some Zhejiang Petroleum & Chemical lines, while Tianjin Dagu and Hebei Shengteng styrene plants plan restarts. However, amid tight styrene supply, short-term load increases at non-integrated styrene units are limited, and overall plant operating rates are expected to rise only modestly.
Downstream
ABS and PS are expected to recover slightly, EPS will weaken seasonally, and overall spot demand remains soft. Mainstream spot transactions are referenced at 10,000-11,000 yuan/tonne.
