operating rate decreased on weakening margins as end-use demand remained tepid

In downstream market, operating rate decreased on weakening margins as end-use demand remained tepid. Meanwhile, in northern China, EPS plants were inactive to buy styrene as transportations were restricted due to the Covid-19 situation.

The market is still oversupplied. The market could find supports due to inventory decrease previously. However, export cargo loadings are slower than expected and styrene demand weakens. In short term, styrene prices would be affected by crude oil prices. Eyes could rest on the recovery in demand.