For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Styrene prices had mixed sentiments on account of fluctuating crude and feedstock Benzene prices. The initial and the last month witnessed an increment in the prices, while the second month of the quarter saw a lower price trajectory. The freight rates across the US and Asian markets were also low, relatively prompting downward pressure on the price realization of Styrene in the US markets. Furthermore, declining temperatures and festive holidays impacted the production rate of Styrene in the United States during December. The purchasing activities from the downstream market declined proportionally, impacting the final prices of Styrene.
APAC
The Asia Pacific market witnessed a continuous decline in Styrene prices on the back of falling feedstock Benzene prices. The high production rates, coupled with muted demand from the downstream industries, kept the prices for the product very low throughout quarter 4. Furthermore, Q4 has seen a series of falling upstream prices, which helped producers to ramp up their production activities and later stockpile, which consequently helped in ample supplies in the region. The Chinese market remained quiet in Q4 due to the covid restrictions and muted demand in the Chinese domestic market. Similarly, the Korean market remained loaded with supplies, and thus India could import Styrene at a discounted rate.
Europe
Throughout the last quarter of 2022, the Styrene market showcased weak market sentiments on the back of fluctuating upstream crude oil prices in the international market. Along with varying crude oil prices in the domestic market, the demand for Styrene also remained muted. The inflation rate in the European region somewhat steadied. However, the prices of Styrene followed southward momentum throughout the quarter. In line with the low prices of Styrene, downstream derivatives Polystyrene, expanded polystyrene, and SBR, SAN also followed a similar pricing trajectory. In December, Styrene’s plant in Boehlen (Germany) plant got shut down as it was too small in capacity to stay competitive amidst the high gas prices.
For the Quarter Ending September 2022
North America
During Q3, a drop in Styrene prices was noted in the US market. The cost of benzene was lowered since South Korea supplies most of the US's feedstock, benzene. The American Petroleum Institute reports a decrease in crude oil imports due to domestic feedstock supplies trending downward and the nation's prices falling. Additionally, the US market's automotive sector has been quiet, which has dulled the nation's market. Further, the cost of Styrene and its derivatives has fallen due to falling feedstock prices and declining demand in the US market. The release of downbeat economic statistics from the United States on Friday contributed to a sharp decline in crude oil prices.
APAC
During the third Quarter of 2022, Styrene prices in the Asia-Pacific region fell. The drop in feedstock Benzene and Ethylene prices as a result of the slowing crude oil values was a crucial element influencing the market dynamics of Styrene. In China, production costs fell in tandem with feedstock prices. On the other hand, in the Indian market, Styrene prices were stable in terms of demand during Q3. Steady demand, government levies, rupee-dollar depreciation, and refinery concept ratio have all impacted domestic petroleum prices, according to market participants. Furthermore, the availability of sufficient feedstock with Indian manufacturers and competitiveness in the Indian market have prompted manufacturers to lower Styrene pricing in the Asia Pacific region.
Europe
The prices of Styrene continued to slip in the German market during the third Quarter. Crude oil prices fell worldwide, significantly impacting the prices of Styrene in the domestic market. The packaging industry remained stagnant throughout the week leading to less demand for Styrene in the country. Furthermore, with the decline in feedstock prices, the production cost also hindered the prices of Styrene in the German market. Again, due to low Rhine levels, Germany's largest oil refinery had to reduce production at its Rhineland facility, highlighting the gravity of the logistics crisis along a key inland route for industrial materials. Moreover, port congestion in Germany's Bremerhaven and Hamburg was worsened. Despite this, falling demand from downstream automotive sectors was another factor in the German market's drop in Styrene prices.
For the Quarter Ending June 2022
North America
In the second quarter, the market sentiments of Styrene remained on a positive edge in the North American market on the back of increasing downstream demand. The price swing occurred towards the second quarter-end as the prices were noted at USD 2150 per MT, FOB Texas in March. The crude oil prices soared in the North American market as the demand level from downstream sectors surpassed the supply level. As a result, the prices of its downstream benzene and ethylene also escalated in the regional market, consequently impacting the Styrene prices. The increase in feedstock prices and rising temperature in the region led to high production costs as the electricity cost elevated. The packaging, paints, and containers sectors remained active throughout the second quarter of 2022. As a ripple effect, the market sentiments toward Styrene remained high in Q2.
Asia- Pacific
Asia-Pacific region observed a positive growth of Styrene towards the quarter-end. The price quotations were marked at USD 1360 per MT, CFR Shanghai in April, and USD 1470 per MT, CFR Shanghai in June. China, one of the major producers of Styrene, suffered from restricted transportation of Styrene throughout the quarter after the imposition of lockdown in major cities. Despite these rules, the demand from packaging industries remained constant, proportionally governing the market sentiments of Styrene in the domestic market. Other facets handling the prices of Styrene are the increased feedstock prices in the domestic market, leading to high production costs as stated by major manufacturers of Styrene in the Chinese market.
Europe
In the second quarter of 2022, the European Styrene market followed the consistency throughout the quarter. The prices varied from USD 1938 per MT, CFR Hamburg in April to USD 1940 per MT, CFR Hamburg in June. The sanction applied by the European Union regarding crude oil led to a supply shortage with the major Styrene manufacturers. This shortage proportionally increased the prices of benzene and ethylene in the regional market, impacting Styrene market sentiments. The production activity of European countries also remained inflated throughout the second quarter, influencing the prices of Styrene. The demand for food containers, packaging, and automobiles remained constant, governing the market segments of Styrene in Q2 of 2022.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, the prices of Styrene in the North American market showcased robust momentum and escalated from USD 1406/ton FOB Texas in January to USD 1650/ton FOB Texas towards the end of the quarter. The escalation in the prices of Styrene in US market were accompanied by the soaring prices of crude oil as the consequences of war between Russia and Ukraine. Major producers spiked up the production cost which affected the Styrene market sentiments. The demand outlook from downstream packaging, automotive, rubber industries remained healthy, as a ripple effect, the prices of Styrene surged up in Q1 of 2022.
Asia- Pacific
The prices of Styrene in the Asia-Pacific region followed the uptrend sentiments in Q1. Flourishing downstream industries, such as plastic rubber, disposable cups affected the market sentiments positively in the domestic market. The feed stock Benzene and Ethylene prices surged up accompanying crude oil prices. The outbreak of Omicron virus in China, forced the manufacturers to halt their production causing supply disruption in the Asia-Pacific market as major manufacturers have terminated their production temporarily. The prices of Styrene in January observed to be $1197/ton CFR Shanghai, China.
Europe
In the first quarter of 2022, Styrene prices showed growth in the European market due to hiked prices of upstream components, Benzene and Ethylene. The ongoing stress between Russia and Ukraine barricaded the supply of Crude oil and natural gas, which forced the manufacturers to boost up their production cost. Consequently, the trade route has been affected and imbalance in supply chain have occurred. Furthermore, the demand from downstream sectors packaging, insulation throughout the quarter remained buoyed, as a result the prices hiked up. In Germany, Styrene prices for the first month of quarter observed to be $1600/ton, CFR Hamburg.
For the Quarter Ending December 2021
North America
In North America, the prices of Styrene remined on the higher end when compared with Q2 and Q3 due to healthy demand amid strong downstream industries. Analysing the market of Styrene on the Q4 monthly basis, US Styrene exports to the world fell by more than 9% in October as higher freight prices on key US trade routes and demand drop from important export destinations troubled US exporters. As per the International Trade Centre (ITC) data, US Styrene exports dipped to 121,854 MT in October. However, several countries imported larger volumes of US Styrene in lieu of increased trading and domestic consumption. Mexico increased its imports of US Styrene to 80,595 MT in October. Meanwhile, prices have remained fairly stable in H2 of Q4 and as per 2nd week of December’s assessments, US Styrene pricing observed an increase of 3% on FOB basis which implies early signs of market shift.
Asia Pacific
In Asia Pacific region, the prices of Styrene in Q4 remained dull when compared with Q2 and Q3. The major Styrene industries in India and China was seen to be pressurized by the additional domestic supply and sluggish demand in the import market. Feedstock Benzene prices were reduced, and market trading activities went weak due to ample supply. India’s healthy demand for Automobile and home appliances was continued and the downstream market was operated stably, and consumers had purchased the product for their need-to basis and were expecting the prices to reduce further. In the last week of December, the prices of Styrene observed to be $1269/ton Ex-Vadodara whereas in China, the prices were $1340/ton FOB Qingdao. Delay in planned maintenance of Zhejiang Petroleum & Chemical Styrene plant along with the restart of its another Styrene unit with 600 KTPA capacity has stressed the regional market fundamentals due to the high supply prospects.
Europe
In Q4, stockpiling of styrene inventories and oversupplies dropped down the styrene prices in Europe. In Germany, sentiment pointed to be imbalanced with feeble demand. Expansive production edges have up to this point represented the additional expense of styrene production, led by critical production interruptions in the fourth quarter that left styrene inventories flimsy. This reduced demand saw benzene stocks develop consistently. In addition, high freight rate had made arbitrage opportunities slimmer leaving the European market long on material with few outlets. Q4 2021 bring prompt supplies depleted and resultant heavily backward pricing curve. As per the sources, in downstream market, the margin for styrene over Benzene in November was wider with the spread passing $500/mt for the month where A spread of $250/mt usually represents a well-balanced market.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, Styrene market experienced turmoil in the North American region. AmSty manufacturing unit in Saint James, Louisiana with the production capacity of 950 KTPA had been shut down pre-emptively as Hurricane Ida makes an intense landfall in the Gulf Coast of the United States which affected the pricing of Styrene in the region. Whereas the impact was much less than that from the winter storm Uri, supply remained dismal due to supply chain disruptions caused by hurricane Ida which exacerbated logistics problems in USA. Price of styrene stood at 1310 USD/MT during the end week of September.
Asia Pacific
In Q3, Dull buying sentiments tumbled the prices of Styrene in the Asia Pacific region. Market prospects of Styrene remained weak as the port restrictions in several countries hampered normal trading activities in the wake of emergence of delta variant cases in the region. This resulted in price increase as suppliers struggled to secure the material. Several plants based in Asia observed temporary maintenance turnaround which resulted further stress on the supply fundamentals. Hence, the market trend of Styrene witnessed an upward trajectory in India as the prices escalated from USD 1183/mt to USD 1418/mt in Q3 2021. Consistent increment in demand from China amid crippled supply activities kept on pushing up the Styrene prices even among Chinese players.
Europe
The pricing trend of Benzene measured bullish sentiments during Q3 in European countries. Strong pricing of Benzene, which is the feedstock of styrene, led to an increase in the pricing of almost all styrenics. Demand for Styrene was seen climbing up in the month of September from the downstream building and construction sectors. Offtakes were consistent from the ABS and Polystyrene manufacturing units throughout the quarter. In Germany, the price of Styrene was last assembled at USD 1340 per MT in September.
For the Quarter Ending June 2021
North America
Styrene supplies in the North American region improved initially in Q2 as the industrial infrastructure in the US gulf region recovered and heavy aromatic crackers operated at improved rates. Styrolution and LyondellBasell lifted the force majeures amidst robust domestic demand for Styrenics such as ABS and Polystyrene. Extending the tightness observed due to storm related disruptions in Q1, the procurement of the spot material seemed still less feasible in the US market. Buyers from the downstream Polystyrene (PS) manufacturing units observed securing large margins. The pricing trend observed a gradual ease proportional to the market supplies with FOB Texas discussion assessed at USD 1360 in June.
Asia Pacific
During the second quarter of 2021, the Styrene supply outlook in the Asia Pacific eased owing to addition of new SM/PO facility of LyondellBasell in China, further supported by the lifting of force majeure at several Styrene manufacturing facilities in the APAC region. However, buying in the Southeast Asian region remained subdued amidst the impact of the second COVID wave in India which restricted the industrial and commercial activities due to partial lockdown. In China, demand showed a spike due to inflows of enquiries from the downstream Polystyrene and ABS manufacturing industries which was said to reach the pre-pandemic levels in Q2. However, rising inflation rate and imposition of consumption taxes on the imported heavy aromatics commodities kept the traders cautious who seemed reluctant to procure high-cost raw material. The pricing trend remained firm throughout the quarter with FOB Shanghai prices settling at USD 2015 per tonne in June.
Europe
Styrene Monomer run rates at several manufacturing plants rallied up at the start of the second quarter. With better run rates reported by several SM manufacturers, the supply outlook in the European region recovered over the previous quarter, whereas the demand was bolstered due to surging enquiries from the downstream building and construction units amidst the economic rebound. Offtakes were consistent from the ABS and Polystyrene manufacturing units which accelerated production to cope up with the improving end use demand and rising exports to the Middle East.
For the Quarter Ending March 2021
North America
During Q1 2021, Styrene supplies in the North American region were tight, as various plants were under maintenance turnaround during the H1 of Q1. This was followed by production disruptions caused due to freezing weather in the US gulf region which resulted in major plant outages in mid-February. However, the demand was on uptrend as the consumption improved from the downstream sectors which prompted a sudden spike in the regional Styrene prices from USD 1300 per MT in January to USD 1900 per Mt on CFR basis in March 2021.
Asia-Pacific (APAC)
During the first quarter, Styrene supplies in the APAC region showed mixed results, as turnaround in several plants came to an end, and producers operated at maximum efficiency. However, there were several production facilities in Japan which were forced to shut their manufacturing units amid power outages caused by earthquake in early February. Meanwhile, the demand surged in the region as the consumption surged to produce ABS and downstream packaging sector flourished. Due to the surging demand from downstream industries such as ABS and Polystyrene, the prices of Styrene spiked in India, maintaining an average of USD 1084.5 per ton CFR JNPT during the quarter.
Europe
The supplies were tight during the first quarter of 2021, as a major Styrene producing plant remained shut in early February, followed by slow industrial and commercial activities amid fears of the second wave of the COVID-19 pandemic. However, contrary to the supply, high demand resulted in an enormous surge in the prices of Styrene. The quarterly trend is anticipated to further continue as traders report emptied pre-stocked inventories and delayed imports.
For the Quarter Ending September 2020
North America
Supply of Styrene in North America was observed to be adequate despite several maintenance turnarounds and forced outages amidst fears of series of seasonal hurricanes. Styrolution, a giant player in the US announced shutdowns at its two Styrene units in Texas and Bayport. Furthermore, turnarounds at derivative Polystyrene and SBR (Styrene Butadiene Rubber) plants weighed on its demand fundamentals in the second half of the third quarter. Amidst all this, gradual pick-up in demand for Styrene from the automotive sector provided a ray of hope on its overall demand fundamentals. Supply overhang was relieved by resumption in demand from Asian countries like Taiwan and South Korea by the end of the third quarter.
Asia
Ample inventories of Styrene in China amidst its bearish offtakes kept its market fundamentals under shadow in the Southeast Asian market. To balance the narrowed demand and supply gap, several manufacturers like SP Chemical and Abel Chemical implemented an abrupt turnaround in Styrene manufacturing units. Although the regional fundamentals relatively improved but inventory levels in China did not witness a prominent change as several producers kept operating above 80% under market competency. In tandem with the grim market outlook, prices of Styrene remained range bound between USD 650-680 CFR China per tonne in August. With the demand for Polystyrene and ABS normalizing by the end of quarter, standalone Styrene producers were the only ones weighed by heavy loss. Furthermore, demand fundamentals in Northeast Asia also revived with improvement in downstream consumption and prolonged import delays from overseas.
Europe
Spate of planned turnarounds since the end of August in several manufacturing and downstream companies contributed well to normalize the demand supply fundamentals in the European region. Producers were heard operating at reduced rates to restrain from any loss due to market volatility. Consumption of downstream derivatives like ABS and SAN considerably improved on the backdrop of pickup in demand for automotive, electronics, consumer appliances and furniture in September. However, demand from the construction industry remained shrouded under containment measures due to Covid-19 where UK and Russia were the major countries highlighting double digit downward growth.
