The prices of Styrene Monomer in Asia declined on Thursday on the back of weaker upstream energy and benzene prices. The price fall was further bolstered by bearish regional demand fundamentals. The FOB South Korea prices were assessed at USD 1200 per tonne which was a drop of USD 15 per tonne from Wednesday levels. Similarly, CFR China prices were assessed lower at USD 1220 per tonne falling around USD 15 per tonne from the Wednesday prices.

Moreover, the upstream Benzene prices were assessed down at around USD 965 per tonne which showed a decline of USD 20 per tonne form the Wednesday prices.

On the supply side, the supply has been easing in China with the Zhejiang Petroleum and Chemical recently bringing its number 1 Styrene Monomer plant online following a maintenance turnaround. The plant was shut in mid-October. The plant is located in Zhejiang, China and has a production capacity of 600 Kilotons per year. Similarly, the number 2 Styrene Monomer plant has a production capacity of 600 Kilotons.

Styrene monomer is the monomer of polystyrene. The monomer is also used to manufacture acrylonitrile butadiene styrene polymer. The monomer has various application in performance plastics, electronics, and automotive etc. The global demand for Styrene Monomer stood at around 40 million tonnes in 2020 and is expected to grow at a CAGR of around 5% during the upcoming years till 2030.

As per ChemAnalyst, “the prices of Styrene monomer which have risen on Thursday due to weak demand and low benzene prices are expected to fluctuate in a wide range in the upcoming months with the capacity of 600 kilotons coming online in Asia and the demand expected to rise from the automotive sector.”