Styrene Prices Dropped on Account of Declining Feedstock Prices

Crude Oil prices have been following southward momentum for the past few weeks, significantly impacting benzene and ethylene prices in the global market. These changes in feedstock prices affected the prices of Styrene plunged in the global market. Styrene manufacturers consider that the weakening prices of Styrene are due to the economic slump and adequate availability of feedstock to cater for the offtakes from downstream sectors. On the other hand, some manufacturers attempt to stimulate requests a little with the help of exceptional offers. With numerous facets, a continuation of the present descending pattern may be feasible until the month's end.

In  Asia, the overall styrene market sentiments remained on the brim of sluggish demand from downstream, food packaging, medical services and kitchen appliances. Major importers of Styrene in the Asia Pacific region are China and India. The Chinese styrene market has been stumbling for the past few weeks as the country faced strict lockdown and natural calamities, which hindered the transportation and demand of the product from end-use businesses. Looking at the Indian market, after the implementation of a single-use plastics ban in the country last month, the demand for styrene-based products declined in the Indian market. Fast-moving consumer goods (FMCGs) sectors, including packaging sectors like chips, biscuits, cosmetics and more, are the only sectors showcasing demand for Styrene in the Indian market.

Moreover, corresponding situations occurred in North American and European regions as the demand for Styrene remained apprehensive. Expanding fears of commodity inflation have loosened the end users' needs as consumers prioritized their necessities, and styrene-based products couldn't find a space in that list. The demand-supply chain in the European region augmented over the past few weeks, leading to a price recession in the regional market.

As per ChemAnalyst, the key factor governing the price dynamics of Styrene in the global market is its non-biodegradable property. Most Styrene manufacturers are putting their feet hard on the brake while requesting and are lessening stocks to bring down the degree of significant worth changes, as Styrene prices are supposed to keep falling.