Despite volatile upstream market, Polystyrene prices slipped down in Europe

In Europe, the styrenics market was heard to be operated moderately with the cost of $2420/ton HIPS FD Hamburg and $2245/ton GPPS FD Hamburg. Feedstock Styrene market was also slowed down where the prices were observed to be $1770/ton Spot Ex-Hamburg and $1640/ton CFR Hamburg.

However, the prices are still on the higher end with volatile crude and Natural Gas market. Rising energy cost and market tightness helped the prices to remain boosted. Lower styrene settlement was unarguably the critical reason for seller's' milder pricing strategy in February. The month-to-month contract settlement followed lower benzene contracts in the midst of volatile energy costs. Despite the fact that accessibility is yet to improve considerably, numerous players hope to see improvement in supply levels as provincial makers lifted force majeures and continued production at their Polystyrene plants. A few purchasers, who engaged with import material in the previous months, are waiting for the appearance of these cargoes. On the demand front, there is a little optimism regarding stock renewal exercises. Costs are yet inflated that forestalls a massive incentive for buyers to purchase however much they can. In product-based breakdown, HIPS accessibility was a shade more tight, which upheld interest for this grade. Meanwhile, GPPS saw support from the insulation applications.

According to ChemAnalyst, the prices of Polystyrene are expected to improve due to increasing demand and insufficient supply. Buyers appear to be less worried about supplies regardless of conveyance delays and an absence of transporters hindering versatility from and to the alliance. Feedstock styrene market is also expected to grow with supply shortage and increase in its consumption in food packaging industries which put pressure on the enterprises to fulfil the requirement and meet the consumer’s need.