Berlin, Germany- INEOS Styrolution and Indaver, a significant player in plastic waste having branches in European countries, recently announced a joint venture regarding Styrene Monomer. According to the agreement, INEOS Styrolution would be accepting the Polystyrene waste from end-use consumers to recycle the same into Styrene Monomer, decreasing the dependency on Styrene Monomer produced from crude oil. In the phase of continuously rising crude oil prices, this proposal may reduce the production cost of Styrene, eventually decreasing the prices in the European market.
Styrene Monomer primarily requires crude oil as its crucial upstream element. The burgeoning prices of the same in the European market proportionally impact the market dynamics of Styrene in the regional market. As per Dr. Alexander Glück, the senior official of INEOS and Indaver, this agreement benefits the company, the environment, and the end-users. Further, he added that the plastic waste dumped in the landfill has more significant potential than expected and can be used for the commercial market. INEOS would collect the dumped styrene waste with the help of Indaver to produce plastic with less carbon footprint to slash down the pollution occurring in the environment. The feedstock of Styrene Monomer, benzene, and ethylene market sentiments may stabilize the regional market.
Furthermore, the demand for Styrene Monomer may remain to stabilize from downstream packaging sectors. As per the resources, packed food containers become a massive pile of plastic waste in the landfills; hence, recycling the same will positively impact the market prices of Styrene Monomer in the regional market. The strategic plan by the companies will not only positively impact the end consumers but also influence the market statistics of Styrene Monomer in the European market.
As per ChemAnalyst, the prices of Styrene Monomer will follow the uptrend in the upcoming days, influenced by the crude oil prices in the international market. The agreement's effects will take time to showcase in the European market. The continuous demand from food packaging sectors will govern the market sentiments of Styrene Monomer in the European market.