H1 2025 styrene downstream capacity expansion and supply-demand dynamics

Since 2025, styrene downstream capacity expansion has continued. According to CCFGroup statistics, new projects include the following:

As of now, EPS capacity has reached 8.17 million tons/year with the startup of Tianjin Bohua's 120 kt/year unit in July. For PS, Sabron added 360 kt/year in H1, bringing total capacity close to 7.2 million tons/year. However, some long-idled plants in Hebei may be excluded by year-end. In ABS, Zhejiang Petroleum & Chemical Phase II added two lines totaling 600 kt/year, with new capacities also from Yulong Petrochemical (300 kt/year) and Daqing Petrochemical (200 kt/year), bringing total ABS capacity close to 10 million tons/year.

Styrene supply-demand in H1 2025

Unit: kt, estimated figures for 2025

With continued downstream expansion, supply and demand dynamics in H1 2025 shifted. Effective PS and EPS capacity increased significantly, driving higher output and boosting styrene demand. Although downstream run rates were not high and market conditions remained weak, styrene demand still rose substantially on the back of overcapacity. In H1, apparent styrene demand grew 654 kt year-on-year, up 11.77%.

Based on styrene downstream apparent consumption from January to May (June import/export data unavailable): ABS demand reached 2.872 million tons, up 17.63% year-on-year; PS at 1.952 million tons, up 8.36%; EPS at 1.525 million tons, down 0.33%. Overall downstream demand remained strong, mainly driven by ABS and PS output growth. Imports continued to decline, while exports increased.

Unit: kt

Looking ahead to H2, downstream capacity expansion is expected to continue. Some major EPS producers have begun building plants overseas. Several PS projects are delayed but still expected to come online. ABS capacity will further expand with new units: Shandong Yike's 200 kt/year line is nearing startup, and Jilin Petrochemical's 600 kt/year project is scheduled for commissioning around October. This would push ABS capacity growth above 20% for the full year. However, as downstream capacity rises, average run rates will decline further. Geopolitical tensions and U.S.–China trade friction in H1 led to early order placements. Meanwhile, end-use demand growth still lags plastics capacity additions. Cost-cutting and flexible operations are expected to persist for some time. Despite higher downstream supply capability in H2, demand growth will be much slower than in H1.