The Declining Prices Trend of US Styrene Mirrored in Downstream Derivatives

Many factors push the US Styrene prices downwards; the primary reason remains the subdued demand from the downstream industries. The Styrene demand has been modest during the past few weeks. The markets for Styrene and Its derivatives are slowing down in the Domestic and International markets. The Styrene prices in the US market are quite low compared to last year.

On the downstream side, the Polystyrene and Expanded Polystyrene price also declined in the last few months due to reduced consumer inquiries for the feedstock Styrene. According to one source, ample inventories are available in the market, sufficient for the downstream manufacturers to produce PS (Polystyrene) and EPS (Expanded Polystyrene). The Expanded Polystyrene market declined on the back of adequate availability and lowered Styrene demand from the end user industries like electronic appliances, construction, automotive, and more.

On the other hand, the market dynamics for US Polystyrene continued to trend downward this week due to falling feedstock prices. On September 2nd, the US market prices for Polystyrene hovered at USD 2740 per MT, GPPS FAS Houston, and USD 2465 per MT, HIPS FAS Houston, a fall of almost 2% each. The cost of producing Polystyrene was affected proportionally as domestic crude oil prices continued to fall, landing at USD 86.61 for the week ending on September 2nd.

Since Benzene and Ethylene are the raw materials used to make Styrene monomer, variation in their prices directly affects the cost of Styrene monomer. In an analysis by ChemAnalyst pricing, the FOB prices over the past weeks have shown significant price drops in the domestic market of the USA. The prices of Feedstock Benzene fell by 2%, at a value of USD 1170/MT, while Styrene prices were assessed at USD 1155/MT with a weekly decline of USD 70/MT, down by 6%.

According to ChemAnalyst, the prices of Styrene in the US market are likely to follow a downward trajectory, owing to sluggish demand in the domestic and international markets. However, as market situations revive, Styrene and its derivatives prices may change the balance in the upcoming months.