Opening Remarks: In May 2026, the domestic ethylbenzene market showed overall weakness under the dual pressure of raw materials and downstream sectors, with regional divergence persisting. Looking ahead to June, multiple factors—including limited support from feedstock benzene, the gradual conclusion of the styrene maintenance season, and anticipated weak downstream end-user demand—will keep downward pressure on the ethylbenzene market.

1. Market Review for May: High-Level Decline, Regional Divergence Continues

May saw an overall trend of weakness in the north and stability in the south for ethylbenzene. The South China market remained flat throughout the month, mainly due to tight supply; the North China market experienced continuous declines, falling by 875 yuan/ton cumulatively (about 9.78% decrease). Prices moved in a unilateral downward pattern, driven mainly by weakness in feedstock benzene, falling styrene prices, and price reductions from suppliers.

In terms of price ranges, ethylbenzene quotes in South China held steady at 9,050 yuan/ton, primarily due to an extreme scarcity of spot supply locally, with no effectively available cargo in the market. Meanwhile, cross-regional transport of ethylbenzene from North China to South China incurred high logistics costs, making arbitrage unfeasible. As a result, there was no impetus for price adjustments in South China, keeping quotes flat. In North China, the average price for the week of May 18-22, 2026, was 8,250 yuan/ton, down sharply by 1,076.5 yuan/ton (11.54%) from early April's 9,326.5 yuan/ton. The "north weak, south stable" pattern in May stemmed from regional supply-demand differences: spot circulation in South China was extremely limited, while North China was more directly affected by falling raw material prices and downstream buyers' price pressure.

2. Feedstock Side: Insufficient Benzene Support, Continued Weakness in Ethylene

Based on May market data, prices of key ethylbenzene feedstocks—crude oil, benzene, and ethylene—showed significant declines. Specifically, NYMEX crude and ICE Brent fell by 12.13% and 11.36%, respectively; East China benzene dropped by 5.02%; and CFR Northeast Asia ethylene plunged by as much as 17.37%. The cost-side support weakened notably, exerting a bearish influence on the ethylbenzene market sentiment.

Table 1: Price Changes of Domestic Ethylbenzene Feedstocks in May 2026

| Feedstock | May 28 | May 14 | Change | % Change | Unit |
|:---|:---|:---|:---|:---|:---|
| NYMEX Crude Oil | 88.90 | 101.17 | -12.27 | -12.13% | USD/bbl |
| ICE Brent Crude Oil | 93.71 | 105.72 | -12.01 | -11.36% | USD/bbl |
| East China Benzene | 7,750 | 8,160 | -410 | -5.02% | CNY/ton |
| CFR NE Asia Ethylene | 975 | 1,180 | -205 | -17.37% | USD/ton |

Source: Chempricehub Information

3. Supply Side: Mainly Self-Produced and Self-Consumed, Limited Spot Availability

On the supply side: According to market feedback, most ethylbenzene production in May was still used captively (self-produced and self-consumed), with spot market transactions remaining low, maintaining a low-supply, low-demand stalemate. Spot sources were primarily from Guangzhou Petrochemical and Maoming Petrochemical; no imported or other channel deliveries entered the market. Producers in South China offered very limited volumes for external sale, with quotes holding flat at 9,050 yuan/ton throughout the month. Although some spot volumes were available in North China, prices came under pressure due to weak costs and downstream demand, falling 5.85% month-on-month. For most of the time, theoretical profitability from ethylbenzene production was poor, discouraging deep-processing from diverting feedstock to external ethylbenzene sales. Overall, the domestic ethylbenzene market remains small in scale, with clear spot sources and low transaction volumes.

Table 2: Changes in Ethylbenzene Producer Prices and Major Market Prices in May

| Producer/Market | May 28 | May 14 | Change | % Change | Unit |
|:---|:---|:---|:---|:---|:---|
| Guangzhou Petrochemical | 8,600 | 8,600 | 0.00 | 0.00% | CNY/ton |
| Maoming Petrochemical | 8,550 | 8,550 | 0.00 | 0.00% | CNY/ton |
| South China Market Offer | 9,050 | 9,050 | 0.00 | 0.00% | CNY/ton |
| North China Market | 8,050 | 8,550 | -500.00 | -5.85% | CNY/ton |

Source: Chempricehub Information

4. Downstream Side: Weak Styrene Pressures Ethylbenzene Market

The main downstream—styrene—continued to weaken in May. At the end of May, prices in the three major markets were notably lower than mid-May levels, with North China delivered prices seeing the largest decline of 4.77%. Overall, styrene prices in mainstream markets fell between 2.34% and 4.77% in May, with a continuously lowering price center. The poor performance of styrene significantly dampened market sentiment for ethylbenzene and further exerted bearish pressure on its pricing.

Table 3: Price Changes of Key Downstream Styrene Markets in May

| Styrene Market | May 28 | May 14 | Change | % Change | Unit |
|:---|:---|:---|:---|:---|:---|
| Jiangsu Self-Pickup | 9,070 | 9,315 | -245.00 | -2.63% | CNY/ton |
| South China Delivered | 9,375 | 9,600 | -225.00 | -2.34% | CNY/ton |
| North China Delivered | 8,975 | 9,425 | -450.00 | -4.77% | CNY/ton |

Source: Chempricehub Information

5. Key Drivers for June

Looking ahead to June 2026, the ethylbenzene market will be influenced by the following factors: The conclusion of the styrene maintenance season, with supply recovery expected to weigh on ethylbenzene prices. Styrene maintenance volumes will decline month-on-month in June, and supply is anticipated to gradually recover. If downstream demand does not improve concurrently, styrene prices may continue to slide, directly dragging down ethylbenzene spot purchase prices.

A turning point in geopolitical factors. Reports indicate that the US-Iran negotiation agreement has been largely finalized, raising expectations for the resumption of navigation through the Strait of Hormuz, which continues to pressure crude oil markets and notably weakens cost-side support. However, the negotiation process remains uncertain; if talks fail to achieve substantive progress, oil prices could fluctuate again, requiring ongoing attention.

In summary, the ethylbenzene market in June will operate under multiple factors: weak raw materials, downstream pressure, and low spot supply, leading to an overall weak consolidation. The core contradiction lies in: ethylbenzene producers' captive use limiting spot volumes, with supply and demand continuing a low-level stalemate. However, bearish influences from the cost side and downstream transmission will dominate. In South China, due to extremely limited spot circulation, price declines are expected to be relatively moderate, but the price center may still shift downward, operating within a range of 8,400-8,800 yuan/ton. North China, more directly affected by raw material and downstream weakness, will likely range between 8,000-8,500 yuan/ton, with the price gap between the two regions possibly widening further. Key points to monitor include: crude oil and benzene price trends; the pace of supply recovery after the styrene maintenance season and changes in downstream operating rates; and developments in geopolitical situations. Overall, a weak trend is highly probable in June, with producers adjusting output based on sales, traders managing inventories, and downstream buyers purchasing on a need basis.