Chemical Products See Broad Decline: Styrene Supply-Demand Contradiction Highlights - May 16 2026

[Introduction] As of the week ending May 14, 80 out of 109 chemical products monitored by Sci99 declined, accounting for 73.39%, with only 19 products rising (17.43%). The overall chemical market showed a clear weak pattern. Styrene daily average price fell 205 yuan/ton to 9,375 yuan/ton, down 2.14%; liquid chlorine, flexible foam PPG and propylene oxide plunged 28.57%, 14.29% and 10.00% respectively. [Analysis] I. Major Chemical Products Price Changes According to Sci99 monitoring data from May 8-14, among 109 chemical products, the top three gainers were toluene (+5.34%), diethylene glycol (+4.91%), and calcium carbide (+4.35%); the top three decliners were liquid chlorine (-28.57%), flexible foam PPG (-14.29%), and propylene oxide (-10.00%). The overall chemical market showed a clear weak pattern. II. Styrene Market In-depth Analysis As of May 14, the daily average price of styrene in major domestic markets was 9,375 yuan/ton, down 205 yuan/ton (-2.14%) from the previous day, down 5.65% from the previous month, but still up 20.38% year-on-year. Supply contraction: Industry operating load fell to 69.29%, down 5.70 percentage points from the previous week, with weekly output decreasing 4.81%. Multiple units were shut down for maintenance or operating at reduced loads. East China main port inventory increased 1.79% week-on-week, but arrivals are expected to decline next week while export loading may increase. Demand improvement: Downstream styrene demand increased 17.62% week-on-week. EPS operating load surged 22.10 percentage points to 53.32%, PS rose 1.15 percentage points to 46.19%, while ABS edged down 0.17 percentage points to 57.11%. All three major downstream segments are expected to see increased production next week. Cost-profit: Non-integrated ethylbenzene dehydrogenation unit theoretical profit averaged -607 yuan/ton, down 35.79% from the pre-holiday week, indicating worsening industry losses. III. Policy Impact China's MIIT launched the 2026 industrial energy conservation inspection, with synthetic ammonia, refining, ethylene, caustic soda, soda ash, methanol, PVC, and calcium carbide included in the mandatory inspection scope. This inspection covers a wide range and involves multiple links in the plastics supply chain. IV. Aromatics and Downstream Sector Performance Among 53 aromatics and downstream products monitored by Sci99, only 4 rose (7.55%), 7 held steady (13.21%), and 42 declined (79.25%), showing overall weakness. [Outlook] For styrene, with planned and unplanned maintenance shutdowns, production is expected to continue declining, combined with port inventory decline expectations and downstream demand recovery. The short-term supply-demand structure may improve and the market may see low-level recovery after oversold conditions. However, weaker benzene feedstock and insufficient demand follow-up still constrain the rebound space. For the overall chemical market, the contradiction between oil cost support and weak demand will persist. Enterprises should: 1) Watch for low-level recovery opportunities in oversold products like styrene; 2) Monitor the impact of MIIT energy conservation inspection on PVC supply; 3) Control inventory levels to guard against continued downside price risk. [Data Source] Sci99.com - Major Chemical Products Ranking (20260508-0514), Commodity Economic Information (20260515)