Bullish Raw material prices elevated the prices of Styrene in China

In China, the prices of Styrene this week surged to $1326/ton Spot Ex-Tianjin and $1230/ton CFR Shanghai with week-on-week inclination of 2.39% and 2.5%. With the start of this Year, the prices remained on the upper end where and keep on increasing. The prices on 1^st Jan-2022 were $1217/ton Spot Ex-Tianjin and keep on accelerating till date. Feedstock Benzene prices were also surged where the prices were hovering around $1021/ton CFR Shanghai-$1082/ton CFR Shanghai.

China’s domestic Styrene market showed upwards trajectory by firmer crude oil and Benzene prices. Traders to a great extent embraced a cautious stand and focused on moving cargoes, considering the supply-demand basics and uncertain standpoint about the overseas markets during China's Lunar New Year occasion on 31 January-6 February. Downstream purchasers in east and north China loaded up in front of the occasion, while interest in south China was weak, for certain small sized producers suspending production for the occasion which increases the price of Styrene. Supply of raw material Ethylene and Benzene was relatively sparse in accordance with environmental factor that comes into play with approaching Winter Olympics had impacted the market of Styrene in China.

According to ChemAnalyst, the prices of Styrene in China will increase with increase in prices of Raw Material Ethylene and Benzene. Upcoming Winter Olympics and New Year Lunar Holiday will slow down the production units of the enterprises and the lack of product will impact the market. Downstream Automotive and Packaging industries more likely to increases the prices of their product as the shortage of raw material and accelerating demand will shrink down the sales and revenue of the industries. Import cargo inventories in east China is also expected to slow down, supporting spot discussion sentiment to some extent and the New Year Lunar Holiday.