Episodic crude oil market governs the market sentiments of Styrene

Crude oil prices have shown oscillating movement in the global market this week, which showed equivalent changes in the prices of Styrene. Being a derivative of crude oil, Benzene's prices also followed the uptrend trajectory globally. Saudi Arabia’s largest oil production company, Saudi Aramko has increased crude oil prices which impacted the prices of crude oil in the global market. In the North American region, the market sentiments of Styrene are driven by spiked prices of its upstream elements, which are Benzene and ethylene, along with robust demand from downstream sectors such as paints and rubber. According to Russian officials, the US has increased crude oil import, consequently increasing the feed quantity with the Styrene manufacturers. 

The Asia-Pacific region has witnessed strong offtakes from construction and packaging Industries, forcing the manufacturers to increase the production rate. However, the shortage of feed with the producers has forced them to increase the production cost of Styrene. Furthermore, in China, one of the major producers of Styrene, Zhejiang petrochemicals, has temporarily shut down its production plant. This step has created a feed supply gap for the downstream producing companies. Along with these factors, Omicron infection in China paused the trading flow of upstream products from supplying countries which relatively affected the prices of Styrene in the regional market. The decorative paint market in other Asian countries such as India surged the demand for Styrene according to the major manufacturer like Asian paint, due to rapid urbanization and varying lifestyles. European market sentiments had seen an escalation in the prices of Styrene owing to the high crude oil prices from significant oil producers. Apart from this, the ban imposed by European countries on Russian oil imports increased the prices of crude oil in the European market. Consequently, major manufacturers show a positive inclination toward the production cost of Styrene to fulfil the demand from downstream sectors such as paints and to produce polystyrene.

As per ChemAnalyst, the prices of Styrene may show buoyancy in upcoming weeks, the cause of varying crude oil prices and production of upstream elements that is Benzene and ethylene. Demand from downstream sectors such as construction and automotive have supported Styrene's sporadic prices in the global market.