During the first week of May 2025, Styrene prices increased drastically in Germany. Market observations by ChemAnalyst showed that the growth rate was about 2.2% from the previous week. This was mainly due to the continuous demand, especially from the food packaging industry and a good recovery in the automobile sector, especially the battery electric vehicle (BEV) segment.

Demand for food-grade packaging remained firm because of stable consumer preferences. Simultaneously, growth in freight charges placed upward pressure on the overall market sentiment, while limited supplier availability, resulting in higher quotes for Styrene.

Despite the prolonged decrease in feedstock Benzene and Ethylene costs, manufacturers decided to raise Styrene prices to balance the reducing profit margins. Although inventory levels did not reduce drastically, traders actively restricted availability, in an effort maintain the growth trajectory in a cautiously optimistic market. Styrene purchase activities remained consistent, with demand patterns supporting the price growth.

In terms of productions, domestic Styrene manufacturing remained stable throughout the week. This was because plants in the region continued their operations normally without any major disruptions. While supply-side constraints were not severe, challenges due to port congestions resulted in some logistical delays. Styrene producers exercised caution by adjusting their output rates with actual demand, avoiding any oversupply in the market. This strategy further supported the price increase during the week.

Looking back, in April 2025, Styrene price trend experienced significant changes. ChemAnalyst noted a drastic increase of around 15% in quotes during the second week due to the growth in production costs. However, this was followed by a 6% market correction in the third week, which reduced the styrene prices from the previous levels. Overall, on a monthly basis, Styrene prices in Germany grew by 3% from March, supported by the standard restocking activities and continued usage of it in major downstream sectors.

During the month, the packaging sector showed average performance in Germany. Gerresheimer, a major player in this segment, reported a year-on-year decrease in organic adjusted EBITDA of about 9.3% for Q1 2025. The company stated the decrease in demand in cosmetic moulded glass and syringe lines as the reason. The weakness in this division kept the recovery levels moderate, but food-related packaging remained a balancing factor for Styrene demand.

Meanwhile, in the automobile sector, overall passenger car production experienced a 7% decrease in April, and exports reduced by 8%. Despite these, BEV registrations increased significantly by 53.5%, accounting for almost 19% of all new vehicle sales. This growth in BEVs, which use Styrene-based components for insulation and in interiors, resulted in the higher usage of Styrene, further supporting the price increase seen in the May first week.