Robust Feedstock Ethylene and Benzene Market Surged the Prices of Styrene in Europe

Styrene spot prices have been rising on higher notes since the beginning of the month. In Europe, lingering supply chain concerns, bullish upstream markets, and a lack of import options have kept Styrene prices in Germany rising. The demand for downstream derivatives acrylonitrile-butadiene-styrene (ABS) and polystyrene (PS) has risen dramatically. CFR Hamburg prices for the first week of March is set at USD 1650 per metric tonne. For the previous week, spot Styrene prices have been primarily hanging around their most recent levels.

After the recovery of capacities throughout Europe, supply levels are regarded to be balanced. Although converters report delivery delays, these are primarily due to a trucker scarcity rather than a lack of supply from the producers. Players are preparing for cost-driven price increases since rising upstream markets will have an impact on the downstream prices. Strong crude oil and naphtha prices are likely to boost Ethylene, Benzene, and Styrene contract prices in March.

The market has already been impacted by the Russia-Ukraine situation. As crude oil prices continue to rise, suppliers are holding off on making proposals, waiting for prices to increase even more due to rising feedstock costs. Local merchants have continued to increase their asking prices. Furthermore, despite the rally's extension into the third month, purchasing demand has not diminished, with players anticipating further gains.

As per ChemAnalyst, “The demand for Styrene in the construction industry has outperformed other categories, with insulation converters reporting strong order entries. Tightness in the Styrene market prevailed due to a shortage in sufficient imports and manufacturing difficulties. Still, converters are pessimistic about the long-term viability of client demand, fearful that rising energy costs will dampen purchasing appetite. However, since last week, spot Ex-Hamburg prices have risen by roughly $10/tonne. This, together with possible increases in the monthly Ethylene and Benzene contracts, will almost certainly result in a higher Styrene price. For the time being, moderate increases are expected.”