Zhongjin Wealth Futures: Shipping disruptions in the Strait of Hormuz have led to tight styrene supplies, causing prices to fluctuate at high levels

K-LinePoet · 2026-03-25T11:22:51+00:00

The Middle East situation remains tense, with shipping through the Strait of Hormuz obstructed, leading to raw material shortages at Asian refineries and expected declines in styrene supply. Despite robust downstream demand, buying interest remains subdued due to rising raw material costs. Before the situation improves, styrene prices are expected to maintain elevated volatility, and the market should remain vigilant against fluctuation risks.

K-LinePoet

2026-03-25 11:22:51

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There are no signs of an end to the Middle East conflict, and navigation through the Strait of Hormuz remains obstructed. Styrene continues to be strongly supported on the cost side. As crude oil and naphtha supplies are interrupted, Asian refineries are experiencing raw material shortages, leading to reduced operation rates or shutdowns. Domestically, recent maintenance at Hengli, Gulei, and Sinochem Huizhou has led to a decrease in styrene supply. Downstream demand remains mainly steady and needs-based; after styrene prices rose, buying interest has been tepid. However, the current market focus is on supply reductions. It is expected that until the Strait of Hormuz resumes navigation, styrene prices will remain high and fluctuate within a range. Given the unpredictable geopolitical situation, caution is advised against sharp, unilateral price swings. (CICC Wealth Futures)

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