How Hard Will Upcoming Hurricane Season Hit Styrene Production in North America
- 25-May-2022 4:26 PM
- Journalist: Bob Duffler
Houston, USA: National Oceanic and Atmospheric Administration of the US forecasted an above-average Atlantic Hurricane Season early this year on Tuesday. The ill effects will be seen on all commodity prices, including Crude Oil and its derivatives in the regional market. As a result, the market dynamics will likely skyrocket in the upcoming weeks. Therefore, all the major US oil suppliers and significant players in the North American market are putting together efforts to tackle the impending oil crisis in the market. As a result, the market dynamics of Styrene will follow the upward trend, leading to brisked prices in the regional market.
According to the resources, this weather prediction has put the significant players of oil refineries and their end-use businesses in turmoil. In the coming months, crude oil processing plants and offshore stages will frequently close. For ethical and safety reasons, this will lead to emptying for security reasons, with a portion of the concern regarding the hurricane. The discontinuity in the extraction of crude oil will force the vital players to increase their stockpiles, resulting in a rise in crude oil prices. Crude Oil is the primary upstream element, and any oscillations in the same have proportional effects on the market dynamics of Styrene.
An analyst says the other factor affecting the market sentiments is the lack of stockpiles among the significant manufacturers from downstream sectors. This uncertainty is caused by shipping lane disturbances and port blockages, which bring higher production margins for styrene production, thus affecting the price dynamics in the North American market. Further, he added, fast urbanisation has prompted high paint and covering demand from end-use businesses, relatively affecting the market position of Styrene. In any case, in the upcoming months, low inventories and rising fuel and diesel prices are adding to the market stress in the run-up to storm season in the North American market.
According to ChemAnalyst, “the prices of Styrene will continue to follow the uptrend in the upcoming weeks on the back of rising hurricane concern in North America.” As a ripple effect, the production cost of Styrene will escalate, showcasing its effects on the market dynamics of Styrene. Other facets governing the Styrene market would be continuous demand from the paint and packaging sectors.