Expanded Polystyrene in Asian Market Have Risen Slightly on Back of Cost Support
- 31-May-2022 3:54 PM
- Journalist: Xiang Hong
Shanghai, China- Because of rising crude oil prices, the market dynamics of expanded polystyrene have been rising in the Asia-Pacific region in recent days, owing to the escalating prices of crude oil. Styrene is the primary upstream element required during the production of Expanded Polystyrene, which in turn requires crude oil as the vital ingredient.
Toward the start of the month, the cost of support in major areas was strong because of the buoyant ascent of global crude oil during the holiday. The demand expanded consistently after the occasion. Around mid-May month, the market price was firm. It entered a solidification phase after the ascent. Sporadic behaviour was witnessed during the last week of May. The ongoing strike between Russia and Ukraine became the root cause of the increase in the prices of Expanded Polystyrene as crude oil prices brisked.
Furthermore, the gasoline price also skyrocketed along with the rising temperature. Benzene and Ethylene markets showed volatile behaviour throughout the week, proportionally impacting the production of Expanded Polystyrene. These ferocious facets have forced the manufacturers to increase the final cost of Expanded Polystyrene in the Asian market.
Because of a lack of political alliances and a clash between the mindsets of government officials from different parts of the world, crude oil prices have risen to $120 per barrel. The burgeoning dollar rate and continuous demand from downstream manufacturers such as foam packaging and electronic insulation drove the market dynamics of Expanded Polystyrene in the Asian market. Moreover, the Chinese market is getting ready to resume its spark in the commercial market and ease the lockdown. This strategic step will consequently increase the freight charges and operational rate of Expanded Polystyrene in the regional market.
According to ChemAnalyst, “The market dynamics of Expanded Polystyrene will continue to follow the buoyancy because of escalating crude oil and upstream element prices.” Stable demand from packaging sectors will continue to drive the Asia Pacific Expanded Polystyrene market.