We are seeing some very strong global production growth in the ACC statistics for February – see table below – both on a year-on-year basis and month-on-month. As we look at China and parts of Europe we should remember that the year-on-year comps are easy as the COVID-related shutdowns were in full swing in February 2020 in China and beginning in Europe. But the month-on-month data is as strong for China as it was for January and it reflects both the wave of new chemical capacity and strong domestic demand, both for domestic consumption of durable and consumables and exports of durables – which continue to keep freight rates high (see above) and ports at capacity (see the last section below). February global numbers have been held back by the Texas freeze issues and this helps to explain the step down in plastic resin growth in particular in February, despite the new capacity in China and some new capacity in the US. The lower production growth relative to underlying demand, especially in the US, helps to explain why pricing has been so high. 
Source: American Chemistry Council
Separately, we have been very skeptical of the strength in the styrene market as we see styrene polymers likely to be replaced by others because of recycling mandates and the relative ease of recycling polyethylene, polypropylene, and PET versus polystyrene (even in pyrolysis). It will be interesting to see whether the new Shell -CNOCC capacity in China tips the balance, and takes the wind out of what has been a very robust styrene market for the last year or so.
