Elevated feedstock Benzene market augmented the price of Polystyrene in US

In this week, price of Polystyrene in USA surged to record heights where the prices were $2240/ton GPPS FAS Houston and $2630/ton HIPS FAS Houston with a week-on-week inclination of 4.19% and 4.16% respectively. Bullish crude and Natural Gas on top of accelerating tension between Russia and Ukraine boost the prices of feedstock Benzene in the regional market.

Upstream crude oil prices surged to $110/bbl, with a jump of $12/bbl in 2 days whereas the Naphtha prices were near $900/mt due to the Russia-Ukraine war for the first time in several decades. OPEC stated that they would consider adjusting their monthly output upwards of 0.4million/bbls per day. Feedstock Ethylene prices were stable in the regional market due to ample supplies and sturdy demands. The demand for Polystyrene started to improve, partly due to pre-buying and surging bulk purchases which resulted in price hike. The operating rates of the major enterprises increased by 2% and the imports from Mexico and Canada were also increased. Styrene Monomer (SM) prices are also surging with strong market sentiments and a lack of product availability.  On 8^th March, Trinseo, which is a global material company in the US, has announced to increase the prices of Polystyrene in Europe.

According to ChemAnalyst, the prices of Polystyrene in the US will increase with surging upstream crude and Natural gas prices. Feedstock Benzene and Ethylene are poised to continue an upward trajectory with an increase in spot prices in the regional market. Increasing usage of Polystyrene in packaging consumer goods and for thermal insulation is the key factor expected to drive revenue growth during the forecast period. With the US restriction on imports of all Russian oil, Indian state-claimed firms that have put $16 billion in Russia's energy sector are trying to work out a method for sequestering their speculations from any expected aftermath.