Styrene in China in 2021: production analysis, market size analysis, import and export data statistics, demand forecast

At present, my country’s styrene is mainly used in polystyrene (PS), expandable polystyrene (EPS), ABS and other chemical products. In 2019, the application volume of the three accounted for about 71% of styrene sales. Among them, the application of PS The volume accounts for about 24%, the application volume of EPS accounts for approximately 25%, and the application volume of ABS accounts for approximately 22%. my country’s styrene industry presents the following characteristics:
The domestic styrene industry has developed rapidly in recent years, and both production and sales have increased: in recent years, with the strong demand in the downstream market, domestic styrene consumption and output have continued to grow. According to the “2021-2027” “China Styrene Market Research and Development Trend Forecast Report” statistics show: my country has become an important market for global styrene production and consumption. The output of domestic styrene manufacturers has increased from 3.8 million tons in 2010 to 7,943,300 tons in 2019.
The average annual compound growth rate is 8.54%; the apparent consumption of styrene has increased from 7.487 million tons in 2010 to 11.131 million tons in 2019, with an average annual compound growth rate of 4.51%. At the same time, the import volume of styrene is showing a downward trend, and the degree of import dependence is gradually decreasing. The import volume has dropped from 3.687 million tons in 2010 to 3.243 million tons in 2019, with an average annual compound growth rate of -1.42%. As domestic styrene production capacity continues to expand in the future, my country’s styrene self-sufficiency rate will further increase. The rapid development of domestic styrene has fully guaranteed the supply of raw materials for polystyrene production.

Analysis of China’s styrene production, import and apparent consumption from 2010 to 2019
Unit: 10,000 tons

Statistics: CICC Corporate Trust International Consulting

(2) Domestic styrene manufacturers are mainly concentrated in the eastern coastal areas: At present, domestic styrene plants are mainly distributed in East China, North China, Northeast China, and South China. Among them, 45% of the production capacity is located in East China, 21% of the production capacity is located in North China, and 10% of the production capacity is located in South China. The new production capacity in the next three years will be mainly distributed in South China, East China, North China and other places.
(3) The price of styrene fluctuates greatly: As a petrochemical product, the source of styrene is crude oil. Generally speaking, the price trend of styrene is positively correlated with the price trend of crude oil. Except for the impact of the fluctuation of crude oil price, styrene The price is also affected by various complex factors such as industry supply, downstream manufacturers’ demand, anti-dumping policies, and futures markets. With the successive launch of domestic styrene plants, the supply of styrene has a significant growth trend.
In the first half of 2020, affected by the new crown pneumonia epidemic and the failure of the Organization of Petroleum Exporting Countries to reach a crude oil production reduction agreement, crude oil prices fell sharply, and domestic styrene prices dropped significantly. The price of styrene rebounded in the second half of the year, but as of December 31, 2020, the market price of styrene was 6,603.10 yuan/ton, still at a historically low level.
(4) Analysis of the current situation of market supply and demand: In the past few years, the domestic production capacity of styrene was insufficient, the contradiction between supply and demand was prominent, and the supply of goods was tight. Especially after the Ministry of Commerce imposed anti-dumping duties on styrene produced in South Korea, the United States, and Taiwan in 2018, the contradiction between supply and demand for styrene in the market has become more prominent, and domestic styrene manufacturers have huge profit margins. In this context, with the promotion of the production boom and the intensive launch of large-scale refining and chemical integration projects, styrene production capacity has maintained a rapid growth trend, such as CNOOC and Shell, Zhenhai Petrochemical, Zhejiang Rongsheng, etc. have invested in expansion.
According to statistics from Zhuo Chuang Information, between 2021 and 2025, 13.7 million tons of new domestic production capacity is planned to be put into operation. By then, domestic styrene production capacity will reach about 25.67 million tons, which will completely change the domestic supply and demand pattern of styrene, and the styrene market will also From a seller’s market to a buyer’s market, the bargaining power of downstream PS factories will gradually increase. At the same time, the intensified competition in the styrene industry will also encourage styrene manufacturers to improve production efficiency, reduce costs, and open up foreign markets.