China's styrene export volume was 270 tonnes in January 2024, plunged by 97.78% on month and 99.33% on year, and the export volume was 6,800 tonnes in February, increased by 2,424.75% from last month while cut by 66.51% from last year. Total export volume was 7,100 tonnes over January and February, plummeted by 88.29% year-on-year, according to the GACC.
Source: GACC
China's styrene import volume was 76,400 tonnes in January 2024, up 157.81% on month while down 2.06% on year, and the import volume was 18,200 tonnes in February, dropped by 76.23% from last month and 82.67% from last year. Moreover, total imports landed 94,600 tonnes over January and February, dwindled by 48.28% year-on-year.
Source: GACC
It can be seen from above charts that Chinese styrene import volume continued falling in the recent three years, and in the meantime, its exports shrank dramatically in January and February in 2024. With consistent improvement in production and capacity of styrene in China, the increase in downstream demand was lower than that of supply, and there was even an oversupply in some regions, leading to constantly waning import demand. Meanwhile, in recent years, the oversupply of Chinese styrene resources has also resulted in more exports to overseas markets. However, the exports were relatively sluggish over January-February of 2024.
With relatively low production cost, the U.S. is a net exporter for styrene resources, so its demand for importing styrene is comparatively low. Despite the open arbitrage window between Asia and U.S., there was no Chinese styrene resources exported to U.S. or even to North America in January and February, according to the GACC.
In addition, although the price difference of styrene between Asia and Europe has climbed to over $200/tonne or even $400/t in February, there was none styrene product directly exported from China to European mainstream areas, owing to the higher freight and longer transportation distance and time affected by the Red Sea situation.
As a whole, with the consistently open arbitrage window and large price difference with Europe, China's styrene exports are projected to inch up in March. While seeing continuous reduction in imports, China will also enhance exports of styrene resources. However, influenced by current economic situation and the transportation, it is anticipated that Chinese styrene exports may still be centralized in offshore areas in the short run.
Written by Cynthia Xin, xinyue@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
