Polystyrene price on a downward trajectory after witnessing peaks for 4-months in Europe

Styrene markets in Europe have taken a tumble after mainly continuing an upswing in the previous four months, with February styrene prices settling down USD 56/tonne. Initial February bids were lower than expected, owing to declining demand and easing availability concerns. Lower Styrene settlement was unquestionably the driving force behind February's milder pricing policy. Lower upstream Benzene contracts, as well as unpredictable energy prices, prompted the monthly contract settlement. From January, two big Styrene producers offered Polystyrene offers with reductions of around USD 45-80/tonne, but market reductions of roughly USD60-70/tonne were more common. Falling energy prices in January, according to one big producer, resulted in greater decline in the values of Styrene drop.

However, there is some optimism about stock replenishment activities on the demand side. Prices are still inflated, preventing customers from being influenced to buy as much as they can. Stronger demand in recent months was primarily driven by a lack of supply, with purchasers simply nibbling at purchases due to inflated levels and predictions of additional reductions. HIPS grade availability was a somewhat tighter in terms of product breakdown, which boosted demand for this grade. GPPS, on the other hand, received help from the insulation applications.

As per ChemAnalyst, “Weak downstream demand will keep European styrene under strain. Polystyrene makers are under pressure as the world shifts away from single-use plastics and toward more recyclable things. Polystyrene demand has been falling year after year, but the European union’s 2021 ban on single-use plastics has exacerbated the trend.”