European Styrene Prices Continue to Fall Due to Moderate Demand and Weak Feedstock

During the third week of November 2022, Styrene prices showed declining market sentiments across the European market. Styrene's market growth has been constrained by concerns about a worldwide recession, stable demand, and a decline in upstream prices. Since the Russia-Ukraine war, Styrene prices have fallen in the European market, and rising interest rates and high inflation are putting pressure on economic development and industrial production.

The most recent dip in price was related to upstream crude oil's downturn. Along with plastic packaging, the automotive and electronics parts, printing cartridges, and container industries, demand from downstream derivatives like Polystyrene, and Expanded Polystyrene, has been weak due to low consumer confidence in Europe. Additionally, downstream companies' inventory levels rose, which forced producers to reduce stock levels by lowering the prices.

Participants in the  European market claim that since domestic manufacturers' production costs have decreased and their products are readily available, this significantly impacts their profit margins. On the other hand, the supply chain was moving smoothly, resulting in low-cost imports from exporting nations like the United States and the Asian market. Additionally, the region now has fewer rates for yard occupancy, vessel bunching, and port congestion. As a result, the supply chain's reliability supported Styrene's lower price. As a result, Styrene CFR Hamburg prices were settled during the previous week at USD 1162/MT.

Similar supply dynamics and constant demand from end-user industries caused the price of Styrene to remain unchanged in the US market. In contrast, as seen in the early H2 of Q4 2022, overseas demand has remained stable on the weak side. Market players indicated extensive domestic market inventories. In conclusion, the Styrene price was at USD 1035/MT FOB Texas.

The ChemAnalyst opinion is, "In the upcoming weeks, it is anticipated that Styrene costs will decrease. The global economy's unpredictability will impact the price of Styrene, which could lead to weak demand from downstream industries ".