Styrene Monomer market to skyrocket as Russia threatens European countries

Styrene Monomer market sentiments have observed an inclination in the global market due to the increased crude oil prices. The Russian government has circulated a warning to major European countries like Poland and Bulgaria, stating a cut in gas supply if those countries fail to pay Russia in the Russian monetary unit, i.e., Rubles. This decision has put the major manufacturers in turmoil between the rising demand and high feedstock prices.

The government officials of Germany have implemented the emergency gas plan, which will be executed in three phases to balance the impending crisis of crude oil and natural gas in the regional market. After the invasion of Russia in Ukraine, many European countries banned the import of Russian crude oil as an effort to terminate the war. However, the impact of this decision also affected the economy of European regions and the major manufacturers facing oil and gas shortages to continue their operational rates. As an ill effect of Germany's government's decision, the primary Styrene Monomer production plant BASF, located in Ludwigshafen, Germany, may undergo a fortuitous shutdown, proportionally affecting the market sentiments of Styrene Monomer in the regional market. These unfavorable facets in the European market may led to supply shortages with the downstream products, that is, packaging, polystyrene production, and coating materials manufacturers, proportionally resulting in a hike in the prices of Styrene Monomer.

Adding to the feed crises, port congestion, and container shortage will lead to more chaos in the market of Styrene Monomer in the regional market. In the US market, the inflation of raw materials strikes the market position of Styrene Monomer accompanied by the strong demand from downstream sectors, which have proportionally affected the prices in the regional market. In the Asian market, the prices of styrene Monomers continue to follow the uptrend with the escalating prices of crude oil. In major countries like China, the Covid infection forced government officials to impose a zero-tolerance policy resulting in the market dullness. However, the packaging industry remained active as the demand for packed food services and material packaging increased in the country. Furthermore, Petronas Chemicals in Malaysia have resumed the production of Styrene Monomer, consequently increasing the demand for raw materials benzene and ethylene, which are the derivatives of crude oil. These factors will showcase its impact on the market sentiments of Styrene Monomer in the global market.

As per ChemAnalyst, the prices of Styrene Monomer will continue to rise in the upcoming weeks along with the crude oil prices. The growing tension between Russia and other significant countries has resulted in trade route disruption and feedstock prices, proportionally affecting the prices of Styrene Monomer in the global market.