Uptrend feedstock Ethylene and Benzene market skyrocketed the price of Styrene in South Korea

The prices of Styrene were observed to be uptrend across the globe. In South Korea, the prices surged to $1350/ton FOB Seoul and $1245/ton with a week-on-week inclination of 9.8% and 9.2% respectively. Feedstock Benzene prices in South Korea were also accelerated where the prices surged to $1060/ton FOB Seoul.

The price rise was supported by bullish regional demand on top of high market sentiments of feedstock Benzene and Ethylene. Lower product inventories in the major importing countries mainly India and China surged the export market of South Korea and the producers had revised the prices for the overseas market. For the Chinese market, South Korean producers had surged the CFR prices to $1375/ton-$1385/ton with an increase of $5/MT. For the April loading of feedstock Benzene, the open deal trade was linked with two counterparties at $1200/MT. Soaring upstream crude and Naphtha prices had impacted the market with the scarcity of product and potential hikes in monthly Ethylene and Benzene prices. The demand for Styrene in China also surged where the demand from downstream Polystyrene was increased. The trade sector of South Korea swings powered by stronger than expected growth in exports. Crude and Natural Gas prices in South Korea have surged amidst the ongoing conflict between Russia and Ukraine.

According to ChemAnalyst, the prices of Styrene will increase in the upcoming weeks with surging energy costs on top of uncertain supply/ demand outlook. Spot Naphtha prices in South Korea is also expected to increase with surging tension between Russia and Ukraine. Traders are going for the bulk purchases which will create a supply shortage in the regional market and the prices will surge. The downstream Polystyrene market will also be affected with declining production rates and surging operating costs.