European Styrene Prices Edge Downward as Demand Remains on the Sidelines
- 07-Feb-2023 12:55 PM
- Journalist: Emilia Jackson
The Styrene prices have fallen in the European market again at the start of February 2023 due to declining upstream prices. Following the massive reduction in Styrene prices, several regional producers attempted to keep discounts as minimal as possible.
Styrene market operations in Italy have been quiet this week as companies in the downstream Polystyrene industry awaited the emergence of new offers. Additionally, Styrene market participants in northwest Europe have been idle this week while they awaited the release of February offers. However, trading activity in the Turkish market was limited as new import Polystyrene offers were postponed until next week.
As per the ChemAnalyst pricing team, the Styrene CFR Hamburg (Germany) prices were evaluated at USD 1170/MT, whereas CFR South Hampton (United Kingdom) prices were weekly averaged at USD 1220/MT, and Styrene FOB Rotterdam (Netherlands) was calculated at USD 1165/MT during the recent week ending on 3rd February.
The price of European Styrene generally decreased due to low feedstock Benzene costs and limited demand. The already low demand estimate was significantly impacted by the short production period and converters reducing stock levels. However, despite the reduced production, there was still enough material on hand to meet the small demand. As the price of Styrene monomer dropped in the European market, the price of downstream Polystyrene dropped significantly. Polystyrene prices in the German market were stabilized at USD1880/MT this week.
As per ChemAnalyst, as feedstock Benzene prices are now on the upper side and may put pressure on the Styrene production costs proportionally, it is projected that prices of the product in the European region will rebound. Additionally, Brent crude upstream is increasing this week, and the demand for Styrene in the automobile industry will probably rise. Consequently, it is forecasted that Styrene prices will likely edge upward in the coming weeks.