The market is sluggish and some products face losses

Seeing from downstream profits, due to the sluggish market of styrene in 2023, the overall profit of various products has further declined. The profit of PS and EPS have continued to decrease, while ABS have flipped to negative from positive. In addition to raw material pressure, the rapid adjustment of supply structures by downstream products and insufficient demand has led to the current situation.

From the perspective of cash flow trend of downstream products in May, PS and EPS is still range bound, while the loss of ABS further expands. Although raw material prices decline, due to the continuous downward trend of ABS market and the unrelieved supply and demand pressure, its profitability is unlikely to improve in the short term.