Styrene Prices Witness a Decline in the Global Market Due to Low Demand

In the United States on Monday, Styrene prices were reported as flat on the lower side. The market stayed closed due to the Presidents' Day vacation in the United States on Monday, i.e., February 20, 2023, and it was determined that upstream benzene prices were constant on the FOB basis

Notwithstanding lower prices of the feedstock Styrene's values, Polystyrene prices were refereed unchanged this week throughout Asia. As purchasers took a wait-and-see attitude to understand the market outlook, the purchasing pulse was reported to be stable. Prices for Styrene Monomer were estimated at USD 1120/MT FOB US Gulf, which is the same as last week's estimated values. Meanwhile, Asia's Styrene Monomer prices were estimated at USD 1565/MT FOB Korea levels on Monday, up USD (+25/MT) from last Friday.

Polystyrene spot prices fell this past week in Europe due to the falling prices of feedstock Styrene monomer. The abundance of available goods in the area has a negative impact on prices. According to reports, the region's demand sentiments were muted. However, Polystyrene export prices in the United States fell this week. Claims of persistently slow buying inquiries from overseas markets compelled Polystyrene vendors to reduce their export prices drastically.

Similarly, in the Asian market, Several Styrene producers provided lower prices on February 21. There is currently enough capital moving about, but the downstream demand recovery has been slower than anticipated, and company confidence is insufficient. On the other hand, the Styrene market is robust, and domestic Polystyrene is anticipated to rise modestly soon. In the East China market, the average price for GPPS is between USD 1300-1400/MT, while the average price for HIPS (polystyrene) is between USD 1200-1300/MT.

As per ChemAnalyst, the Styrene prices are expected to remain intact on the bearish note as there is no positive demand anticipation in the major exporting markets. The average capacity utilization in the west remains the same as it was last month. Also, the buyers are procuring the material on a  need basis. Thus ChemAnalyst is monitoring the Styrene price movement in different regions in line with the upstream crude oil and changes in the demand-supply dynamics.