European Styrene Prices Increase Due to Strong Upstream Markets

Since the beginning of the month, Styrene spot prices have increased on higher notes after decreasing repeatedly. Styrene prices have been growing throughout Europe since the start of this month due to ongoing supply chain issues, robust upstream markets, and a lack of import opportunities. The demand for downstream products such as Polystyrene (PS) and Acrylonitrile-Butadiene-Styrene (ABS) has increased significantly. According to the pricing experts at ChemAnalyst, Styrene CFR Hamburg prices for the recent week of April have settled at USD 1160 per metric tonne, an increase of 8.6% in the last two weeks.

Supply levels are thought to be balanced following the recovery of capacity across Europe. Even though converters complain about delivery delays, these are mainly caused by a shortage of truckers rather than a shortage of supplies from the producers. Due to the fact that rising upstream markets would affect downstream prices, players are bracing for cost-driven price hikes of Styrene. The final week of March saw an increase in the contract prices for Ethylene, Benzene, and Styrene due to high Crude Oil prices.

Recent weather conditions with significant rains have impacted the northwest European market. Suppliers are delaying proposals as Crude Oil prices increase further in anticipation of higher prices due to rising feedstock costs. However, despite the rally continuing into the third month, buyer demand has not decreased, and players continue to expect gains.

According to ChemAnalyst, The Styrene market was constrained because of a lack of adequate imports and challenges with manufacturing. Although converters are skeptical about the long-term stability of customer demand, they are concerned that rising energy prices will stifle consumers' desire to purchase. Nonetheless, spot Ex-Hamburg prices have increased by almost $90/tonne since last week, and they are expected to continue to rise in the European region as demand is upstream Crude Oil is on the rise. There will probably be an increase in the price of Styrene as a result of this, as well as potential hikes in the monthly Ethylene and Benzene contracts.