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2018 was a year of significant changes in the styrene market. Against the backdrop of anti-dumping measures and trade wars, the existing structure of the styrene market changed, and a new pattern is emerging for China’s styrene market in the future. It is clear that anti-dumping measures brought about significant changes to the styrene market in 2018. The most obvious impact of anti-dumping measures is a significant decrease in import volumes. And before the decline in imports affects supply to downstream sectors, it first impacts the volume of trade in the market. Especially in the middle of the year, the depreciation of the RMB further increased the customs clearance costs for importers. Importers purchasing in the US dollar market became less enthusiastic, which in turn led to a decline in activity among second-hand sellers and individual traders. While anti-dumping measures affect domestic styrene traders, they also impact the downstream users of styrene. Some of the downstream industries for styrene in China are operated by foreign or joint-venture factories, which import styrene on a regular basis for production; as a result, anti-dumping measures on styrene have also led to increased costs for certain domestic downstream products. Against this backdrop, some businesses that used to import styrene began to turn to importing downstream products of styrene directly, resulting in a significant increase in the import of such downstream products. From January to August, China’s imports of EPS increased by 144.51%, those of PS rose by 52.64%, and imports of ABS increased by 18.62%, showing a significant increase in volume. Anti-dumping measures have affected the domestic supply of styrene, driving up its prices. With the price of styrene remaining high in the domestic market for a long time, the profits of styrene plants have also been high, leading to the construction of new styrene production facilities across the country. In the next 2-3 years, China is expected to see an additional production capacity of around 6.5 million tons for styrene, of which more than 5.5 million tons of this capacity is already under construction. At present, new styrene production facilities in China have the following two characteristics: 1. Large production capacity. Looking at the styrene plants scheduled for commissioning at present, over 70% are large-scale plants with a capacity of 300,000 tons per year, and most of these are SM/PO co-production plants. These large-scale co-production facilities already have cost advantages, and considering the lower operating losses of new facilities, their products enjoy a significantly stronger competitive edge. 2. The commissioning time is concentrated. By the end of 2018 alone, a total capacity of 2.12 million tons per year was put into operation by CITIC Guoan Ruihua, Hengli Petrochemical, and Zhejiang Petrochemical. Looking at the current plans for the production of styrene in China, the capacity planned to be brought online in the next two years is also around 2 million tons per year. The release of this production capacity over the course of a few years will undoubtedly have a significant impact on the styrene market. In summary, over the next few years, the styrene market will take on the following new pattern: 1. The operating space for traders will be significantly reduced. Following the simultaneous release of new production capacity in the domestic market, the tight supply-demand balance for styrene in 2018 will be broken. In the coming years, there will inevitably be an oversupply in the styrene market, leading to a rapid shift toward a buyer’s market. During this process, some traders who lack advantages in terms of services or pricing may gradually be eliminated. 2. Competition among domestic factories is becoming more intense. Based on the current production costs of domestic factories, the dry gas method and the co-production method have lower costs compared to the conventional ethylbenzene dehydrogenation method ； The cost of large integrated units is lower than that of small units ； The new device is lower than the old one. Following the significant expansion of production capacity in domestic factories, the overall profit levels of these factories are bound to decline; some units that lack cost advantages may be shut down or kept offline for extended periods, and it will be difficult for the styrene industry to maintain its current high level of operation. 3. Inter-plant transactions between upstream and downstream manufacturers will increase further. Previously, this type of transaction model was limited to styrene plants and large to medium-sized downstream factories; in the coming period, it is expected that small downstream factories will also benefit from it, which will reduce their production costs. Against the backdrop of the trade war, as exports in the home appliance and automotive industries are hindered, cost reductions also benefit the production of downstream styrene manufacturers, thereby helping to maintain the scale of the domestic styrene industry chain, which in turn has an impact on the styrene sector.