Strong freight prices and demand deterioration lead US Styrene exports to decline by 9% in October

US Styrene exports to the world fell by more than 9% in October as higher freight prices on key US trade routes and demand drop from important export destinations troubled US exporters. As per the International Trade Centre (ITC) data, US Styrene exports dipped to 121,854 MT in October from 134,171 MT in September 2021.

Imports of Brazil declined to 6,493 MT in October from September where imports were at 9,304 MT. Similarly, in Chile, US exports dropped to 2,358 MT from 2,873. Europe felt the brunt of resolutely high freight charges and container shortage which resulted in decline in US exports of Styrene. Netherlands imported close to 5,100 MT in October while US exports to the country were at 17,415 MT in the previous month.

However, several countries imported larger volumes of US Styrene in lieu of increased trading and domestic consumption. Mexico increased its imports of US Styrene to 80,595 MT in October while Columbia almost doubled its Styrene imports to 15,981 from 8,840 MT in September. Turkey also expanded its imports to 10,249 MT in October.

Demand from downstream Polystyrene has stabilized in the last few months as consistency in volume intakes has been observed from key Polystyrene manufacturers. Another key factor at play has been increasing dominance of Taiwan in Styrene market where the South Asian country is key exporter of Styrene monomers in the world and broadening its global presence. Taiwan measured a boost in its Styrene exports in October where the world imported close to 42,000 MT in the first month of last quarter.

Meanwhile, prices have remained fairly stable in H2 of Q4 and as per 2^nd week of December’s assessments, US Styrene pricing observed an increase of 3% on FOB basis which implies early signs of market shift.