For the Quarter Ending March 2024
North America
In Q1 2024, the North American Styrene market, particularly in the U.S., exhibited higher price trends, with market reflecting the broader economic and supply influences. Kicking off the quarter at USD 1040/MT, prices-maintained stability amid modest downstream demand and an oversupply due to robust manufacturing output.
As the quarter progressed, the market saw a gradual uptick in prices, propelled by a confluence of factors including rising feedstock costs and heightened freight rates due to global shipping challenges. The month of March continued to see an upward trajectory in prices, with a slight dip mid-month before closing at USD 1500/MT.
This final rise was attributed to supply chain disruptions, which led to a mismatch in product-to-demand ratio, and a boost in downstream demand that put additional pressure on pricing. Throughout the quarter, the market responded to a complex mix of upstream market dynamics, logistical constraints, and downstream industry needs, ultimately driving a cautious yet ascending pricing structure in the North American styrene market.
APAC
In the tumultuous landscape of the Asian styrene market during Q1 2024, dynamics were characterized by significant fluctuations and intricate interplays of various factors. Commencing with a backdrop of heightened import costs and constrained supply in China, stemming from geopolitical tensions in the Red Sea region, prices initially surged. However, this ascent was swiftly followed by a moderate downturn, only to be countered by a resurgence by mid-January. Amidst this backdrop, downstream demand, notably in sectors such as packaging, remained resilient, providing stability to prices. As February unfolded, the market witnessed a further uptick to USD 1100/MT, propelled by escalating feedstock costs and a post-holiday rebound in demand. Despite concerted efforts to stabilize, persistent supply constraints and elevated freight rates exerted sustained pressure on market dynamics. By March, the pricing trajectory continued its upward trajectory, culminating in a closing figure of USD 1130/MT for the quarter. This upward momentum occurred against the backdrop of market participants adopting a cautious procurement stance in response to ongoing cost escalations. Throughout the quarter, the Asian styrene market grappled with the intricate balancing act of navigating supply tightness, upstream cost pressures, and fluctuating demand dynamics, culminating in a dynamic pricing environment that tested the resilience and adaptability of stakeholders across the region.
Europe
The European styrene market experienced a dynamic first quarter in 2024, showcasing trends that swayed between stability and flux. In Germany, the quarter unfurled with a slight dip in prices, reflecting an oversupply primarily due to increased imports from the Netherlands. This prompted sellers to slash prices, fostering a bearish sentiment as they manoeuvre to balance the scale of supply and demand. As January progressed, a notable 5.8% upswing in prices occurred, spurred by the downstream ABS market's burgeoning demand and rising production costs linked to upstream market surges. Shipping complications, notably in the Suez Canal, strained the import of petrochemicals, inadvertently cushioning European producers by making imports pricier and less competitive. February's narrative was dominated by a continued price ascent, in light of escalating crude oil prices and tightened global supply. The ripple effect of geopolitical tensions in key trade routes exacerbated the situation, while domestic producers ramped up operations to mitigate supply disruptions. March's tapestry was woven with intricate patterns of supply constraints and demand pressures. Despite mid-month stability, prices gently increased to USD 1555/MT by month's end. This was influenced by the combined forces of continuous supply chain woes and a climb in feedstock benzene rates, signifying a market responsive to the immediate global economic milieu yet striving for equilibrium. Throughout Q1 2024, the European styrene market mirrored the complex interplay of international events, supply chain agility, and raw material cost volatilities.
MEA
In the MEA region, the first quarter of 2024 was marked by a subtle yet steady increase in the Styrene market, primarily influenced by the Saudi Arabian sector. Prices maintained a stable stance at the onset, starting at USD 975/MT in January. A slight fluctuation was seen mid-quarter, with figures dipping, only to rebound and stabilize once again. The market faced heightened shipping costs and supply constraints owing to geopolitical unrest in the Red Sea, which necessitated longer and costlier shipping routes. By February's end, prices edged up, as a response to rising upstream costs, despite a stable domestic demand. The continued ascent in March saw prices peak, driven by increased demand from downstream industries and a consequent rise in ethylene prices. The quarter concluded with prices holding firm at USD 1030/MT, a reflection of the market's ability to absorb upstream cost pressures and adapt to the geopolitical climate affecting supply routes. This resilience in the face of supply challenges and the ability to meet persistent demand characterized the MEA styrene market's performance through March 2024.
South America
In the first quarter of 2024, the South American styrene market demonstrated a significant upward price movement. In Brazil, prices were stable in the early weeks but began to rise mid-quarter, reflective of increasing costs in feedstock benzene and constrained supply from the U.S. due to logistical challenges and elevated freight rates. As March approached, prices continued an ascending trend, closing notably higher at USD 1560/MT. The price surge was attributed to a combination of factors: the tightening global supply due to the Red Sea crisis affecting shipping routes, the bullish trend in upstream crude oil prices, and a steady demand from downstream industries like Polystyrene (PS) and Expanded Polystyrene (EPS). The Brazilian market, heavily reliant on imports, particularly from the U.S., felt the ripples of international market shifts, mirroring the upticks in its primary source markets. The South American styrene market's price dynamics throughout Q1 were a direct reflection of these complex interplays of supply-demand economics, geopolitical influences, and upstream market fluctuations.
For the Quarter Ending December 2023
North America
In the North American Styrene market during the current quarter, stability was observed with moderate supply and demand. Several factors influenced the market, including limited market off-take and reduced international demand, potentially causing price decreases.
Adequate inventories and subdued local demand also played a role in the downward price trend. In Mexico, the styrene market witnessed a 3.5% price decline in November and a further 1.5% decrease in December. The market trend for Mexico remained bullish, characterized by a high to moderate demand for styrene.
The pricing trend in the US Styrene market continues to show a decline with the end of Q4 2023. This pattern suggests a phase of downward trend after distribution phase. Overseas Buyers are proceeding cautiously in their procurement strategies, while sellers actively explore profit-taking opportunities during this phase through strategic short positions. The presence of significant inventories among end-users has further contributed to a slowdown in trading activities this quarter. Lastly, the current quarter's latest price for Styrene CFR Manzanillo in Mexico stands at USD 1174/MT.
APAC
The Q4 2023 Styrene market in the APAC region experienced a declining trend throughout the quarter due to various factors. A surplus of product supplies, weak product demand, and limited market uptake led to a decline in Styrene prices. Additionally, a slight decrease in new orders from other Asian markets prompted market participants to reassess and lower prices. Japan witnessed the maximum change in prices, with a 3.2% decline in Styrene FOB-Tokyo due to a high supply of the product combined with weak demand. However, the market situation remained bullish due to the high demand for Styrene from downstream derivative industries, such as PS, EPS, and ABS. Furthermore, the continuous weakness in upstream crude oil prices and currency depreciation also affected the market fundamentals. The price percentage change from the previous year's same quarter was 0%, and there was a 4% decline in prices from the current to the previous quarter. The price percentage comparison of the first and second half of the quarter was 2%. The quarter ending price of Styrene FOB Tokyo in Japan was USD 1051/MT.
Europe
In Q4 2023, the market faced a decline in prices due to the surplus of product supplies, weak demand, and declining regional uptake, leading to a decrease in Styrene prices in the Netherlands. The depreciation of feedstock Benzene and Ethylene prices, along with reduced crude oil prices, contributed to a decrease in production costs, leading to decline in the price trend. The Dutch Styrene market experienced a substantial decrement in its market value, which was supported by resilient market fundamentals in its downstream derivative sectors. The quarter saw year-on-year decrease in prices in the Netherlands and a -18% decrease from the previous quarter. Moreover, there was a -6% price decrease in the second half of the quarter compared to the first half. The quarter's price for Styrene FOB Rotterdam in the Netherlands was USD 1033/MT. No significant plant shutdown was reported during this period.
MEA
While an overall increase in prices is evident from the previous quarter to Q4 2023, a closer examination of quarterly trends reveals a decline in styrene prices from Oct 2023 to Dec 2023. In the MEA region's Styrene market during Q4 2023, various challenges impacted pricing dynamics. Notably, a decline in demand from the Asian market led to market saturation, prompting a reassessment and reduction in product pricing. Additionally, a slight downward adjustment in new orders further contributed to the overall decline. Saudi Arabia, a key player in the Styrene market, experienced a 3% decline in pricing during Q4 2023. The market-maintained stability with a moderate supply of the product. Factors contributing to the price decline included subdued buying appetite from customers, who perceived the product as overvalued, and the market's response to sufficient material availability and continuous supply from manufacturing units. Supply chain adjustments were implemented to prevent oversupply and maintain prices at a higher level. The percentage change in the price from the same quarter in the previous year was -4%, while the percentage change from the previous quarter in 2023 was +6%. The quarter concluded with the latest price of Styrene FOB Dammam in Saudi Arabia at USD 962/MT.
South America
The South American Styrene market has shown a declining trend with subdued prices, reflecting waning interest from consumers in the South American region for further investment in the product. This decline is attributed to fragile and dwindling demand from downstream manufacturing sectors like Polystyrene (PS) and Expanded Polystyrene (EPS). An oversupply scenario has complicated market dynamics, leading to ample inventories. As a result, suppliers are grappling with the task of managing excess stock. However, the Brazilian Styrene market has also experienced downtrend, supported by sluggish market fundamentals, balanced supply and demand dynamics, and lacklustre market performance from the downstream derivative enterprises. Despite recent fluctuations in crude oil prices and higher freight charges impacting pricing dynamics, the market has found feeble market trend in the sluggish activities of downstream derivative market. The sluggishness in prices is further attributed to consistent supply from the US market, contributing to substantial inventories within the domestic sector. Lacklustre demand from downstream industries, the surplus of local stocks plays a pivotal role in declining the market trading activities for the fresh stocks. The market has proven its capacity to withstand and adapt to changing conditions, emphasizing its resilience in the face of diverse influencing factors. The percentage change from the previous quarter in 2023 was -1%. The quarter concluded with the latest price of Styrene CFR Santos in Brazil at USD 1181/MT.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, the US Styrene market maintained a bullish outlook. The price of Styrene experienced an incline of approximately 6.8% over the entire duration of Q3. In the first month of Q3, the Styrene market has witnessed a notable upward trajectory, predominantly fueled by the surge in crude oil prices. Additionally, optimistic economic indicators, exemplified by reduced recession fears and rising interest rates, have stimulated economic expansion, further strengthening the market fundamentals, particularly in downstream Automotive industries. Moreover, the market has been impacted by tightening oil supply due to cuts by the organization of petroleum exporting countries, alongside disruptions in the supply chain, contributing to the overall price escalation. In the month of August, due to identical circumstances, the price continued to increase in the first week, but as the month of September approached, the US styrene market maintained a stable price trend, exemplifying resilience amidst various influencing factors. Notably, the market stability can be attributed to the reduced export activity caused by the drought conditions in Panama. This scenario has led to a slowdown in shipping through the Panama Canal, subsequently decreasing the export volume. Consequently, high inventories have been observed in the domestic region, shaping the market fundamentals. Despite the sustained high demand from downstream industries, including sectors such as EPS and Automotive, ample inventories within the local market have played a crucial role in maintaining market stability.
APAC
In the Asia-Pacific region, the price of Styrene experienced an incline trend with an overall increment of (22%) during the third quarter of 2023. In the first month of Q3, the surge in Styrene price from the expatiations of slower output recovery, as China imposed a consumption tax on mixed xylene, coupled with a rise in the consumption rate of Styrene from its downstream derivative industries. Unexpected events, such as Wanhua’s early restart and the postponement of shuanging Leasly added market uncertainty. Speculations surrounding the brief shutdown of Lhways and export opportunities further influenced prices. In the second month of Q3, the global Styrene market experienced a noteworthy price surge, primarily driven by the continuous rise in crude oil prices. The uptrend in crude oil costs directly impacts the production expenses of Styrene, subsequently influencing the market price of the final product. Moreover, the market has been influenced by tightening oil supply due to cuts by the organization of petroleum exporting countries, alongside geopolitical tensions, supply chain disruptions, and growing global demand for crude oil. These factors have collectively contributed to the upward trajectory of prices, pressurized Styrene manufacturers to adjust pricing strategies, and resulted in higher costs for end consumers. Further, in the month of September, the Styrene market has shifted course with stability in its prices, a departure from its previous consistent growth. This adjustment is attributed to market dynamics where customer needs have been met, leading to a saturation in market activity. Furthermore, the modest demand for the product from derivative sectors contributed to the price stability on the domestic front.
South America
Throughout the third quarter of 2023, the Brazilian Styrene market maintained a bullish outlook. The price of Styrene experienced an incline of approximately 22.4% over the entire duration of Q3. At the beginning of Q3, the Styrene market displayed an upward price momentum driven by competitive market conditions and the escalation of Crude oil prices. The surge in prices has been further bolstered by robust demand fundamentals and increased spot activity on a global scale. Further, in the month of August, a significant surge in its market value was observed. The upswing in prices was attributed to the limited availability of materials and disruptions in transportation, leading to a tighter supply situation. Combined with cuts in oil supply by the organization of petroleum exporting countries, the prices for Styrene led to significant price escalations. Furthermore, the surge in demand from key industries such as polystyrene and its derivative sector also influenced the market dynamics. Coming in the last month of Q3, The styrene market in Brazil maintained stability, with prices consistently holding firm at a high level. During Aug 2023, the cost of Styrene CFR Santos surged to USD 1271/MT. Despite robust and continuous demand from various downstream industries, the presence of substantial stockpiles within the domestic market, largely attributed to a consistent supply stream from the United States, has ensured that the market remains adequately supplied.
Europe
In the European market, Styrene has experienced a noticeable inclining trend within the entire third quarter of 2023 with approximately (34%). At the beginning of Q3, the Styrene market showcased a bullish market trend. As per market analysts, the Styrene market has increased its prices due to heightened competition and elevated crude oil expenses. The augmentation in demand fundamentals and intensified spot activity on a global level have further contributed to the upward movement of prices. Moreover, a discernible surge in buyer interest in the international market, particularly from crucial sectors such as Polymers and construction, has spurred substantial consumption. This robust demand has led market participants to sustain the upward trajectory of prices. This upward momentum continued till August. Further, in the month of September, the Styrene market presented a declining trend, characterized by subdued prices. The correction in the price was observed as the consumers in the European region lost interest in further investment in the product as Manufacturing PMI edged slightly lower to 43.4 in September 2023 from 43.5 in August, below market forecasts of 44, preliminary estimates showed. The reading continued to point to a very fragile and weak manufacturing sector amid waning demand for products.
MEA
During the third quarter of 2023, the Styrene market in the Arabian region experienced an increment of around 6.6%. At the beginning of Q3, the Styrene market exhibited a bullish trend promoted not just by the thriving downstream Polymer industry but also by mounting concerns over crude oil prices. The robust Styrene market fundamentals, characterized by strong demand for petrochemical feedstock, have further contributed to the heightened demand for Styrene. Strong buyer interest from the international market, particularly from the Automotive and Rubber industries, has driven the price upward. Further, in the month of August, the price remained saturated and continued to consolidate in its price zone. Further, in September, an upswing in prices was observed, attributed to the limited availability of materials and incessant aggressive demand from the Asian region, which led to a tighter supply situation in the local market. Furthermore, rising feedstock Benzene and Ethylene prices strengthened Styrene production costs and forced manufacturers to increase their prices.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the Styrene market value showed an overall declining price trend amid uncertain economic conditions coupled with the rising inflation rate. In April, the price of Styrene showed an increase in price due to high demand from the major associated downstream Solvent and Derivative industries amid insufficient availability of material. Furthermore, the surge in crude oil prices also supported the market trend during this time period. In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and provoked the buyers to hold back from placing large orders with its feedstock Benzene and Ethylene prices remaining at its lower edge, consequently hampered the Styrene market growth, the continuous declined crude oil prices around the globe showed its effects on the styrene market also, due to which in the month June sharp drop in the price of styrene was observed, with its overall Styrene FOB Texas showcased a decrement of (4%) during the Q2 2023.
APAC
In the Asia-Pacific region, the price of Styrene experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the Styrene market witnessed a surge in price trend. A rise in demand from its downstream industries, such as Solvent and rubber, put significant pressure on the supply of material in the Chinese market. Coming to the last two months of Q2, the domestically traded price of styrene in the Chinese market assessed a declined price trajectory. This drop was observed due to the extended weakness in the buyer appetite in the domestic market, with sluggish end-user consumption in the key derivative and Rubber industry. Additionally, the Styrene prices were also impacted by the continuous reducing feedstock Benzene and Ethylene prices, also weak crude oil prices decreased the overall production cost of material; thus, market players experienced pressure and provided discounts on the product to sell their stocks which kept the styrene market on its lower end. Thus, the Styrene CFR Shanghai experienced an overall decrement of (10%) within the Q2 time period.
South America
The Styrene market has witnessed a mixed price trend during the second quarter of 2023 in the South American region. At the beginning of Q2, the Styrene market witnessed a surge in price trend fueled not only by crude oil prices but also by the raised demand from the major downstream Solvent and Rubber industries. As a result, the industry's heightened demand has created a supply-demand imbalance, resulting in notable price escalations. In order to meet the growing demand, a significant increase in trading activities for the commodity has been observed. Moreover, market participants shifted their focus towards acquiring substantial stocks to further stockpile inventories during April and May. Coming to the last month of Q2, the market value of styrene showcased a declining price trajectory as market participants claimed to already procure a substantial amount of the product in the previous month, which led to market saturation. Additionally, weak cost support from the upstream crude oil prices manipulated market participants for furthermore investment in the product. In conclusion, overall, Styrene CFR Santos experienced a drop of approximately (3.3%) during the entire Q2 time period.
Europe
In the European region, the Domestic Styrene market has witnessed a mixed-price trend during the second quarter of 2023. At the beginning of Q2, an upswing in the styrene market was observed. This uptick in Styrene's market sentiments is primarily driven by increased demand from downstream industries such as Styrene Butadiene Rubber (SBR), Polystyrene (PS), and other polymer industry. Furthermore, this surge in demand has also raised material export activity, and suppliers faced difficulties in meeting the growing requirement by exploring international and local markets. This has resulted in increased export volumes, contributed to supply chain dynamics, and played a role in mitigating the supply-demand imbalance. Furthermore, coming to the last two months of Q2 overall Styrene market showcased a downward trend, as the request for styrene from the associated downstream industries remained moderate but regular inflow of material kept the buyers on the side-lines with high Styrene records, which resulted in muted trading activities for this commodity. In addition, the declining crude oil price continuously manipulates market participants to keep the prices on a weaker slope to keep the prices competitive. Furthermore, economic uncertainty and recession fear continue to govern market sentiments. However, the Styrene FOB Rotterdam market remained down by approximately (5.7%) within the Q2 time period.
MEA
In Saudi Arabia, the Styrene market experienced a mixed trend during the second quarter of 2023. At the beginning of the quarter, the Styrene market witnessed a surge in price trend. This growth is attributed to the surge in demand for downstream industries such as Rubber and Solvent. Additionally, favorable market conditions and stable economic growth played a role in the upward trend of the Styrene market in April. Moving to May, the Styrene market in Saudi Arabia showcased a declining trend due abundance of material availability and weak cost support from the crude oil prices. Furthermore, in June, a slump in crude oil prices also reduced feedstock Benzene and Ethylene prices due to which overall production cost of material experienced a drop, consequently affecting market fundaments and keeping the market at its lower edge. Additionally, diminished consumption rates from the downstream associated industries manipulated market participants for further investment in the product. With it, enterprises didn't show any interest in bulk purchasing. Instead, the market participants looked interested in procuring their stocks on an immediate basis amid feeble purchasing activities in the international market during this month. Anyway, overall, Styrene FOB Dammam prices showcased a decrement of approximately (5%) during the entire Q2 time period.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Styrene market showcased mixed sentiments on account of fluctuating upstream (crude oil) prices in the regional market. Towards the end of the quarter witnessed a hike in Styrene price as the demand-supply gap increased along with increased crude oil cost. The US labor shortage and supply chain issues further exacerbated the situation. Towards the end of last quarter, the declining temperatures and the Brazil carnival impacted the production rate of Styrene in the regional market. The purchasing activity from downstream (Polystyrene, ABS, and SBR) declined proportionally, impacting the final prices of Styrene in the US market in Q1 2023.
Asia-Pacific
The Asia-Pacific market witnessed a continuous decline in Styrene prices on account of a slow production rate. The initial phase of the quarter witnessed a fall on account of declining upstream (crude oil) prices in the international market. Consequently, the suppliers and end users stockpiled the product. Moreover, the demand for the product from downstream (polystyrene, ABS, and SBR) in Feb was slow, proportionally impacting the final prices. Moreover, the second half of the quarter witnessed other factors, such as truckers' strikes in South Korea and a sluggish supply chain. The Chinese market remained quiet throughout the quarter on the back of COVID restrictions and slow demand for the product. Suppliers received fewer inquiries impacting the final prices in the Asian market.
Europe
Throughout the first quarter of 2023, the Styrene market showcased weak market sentiments on the back of fluctuating upstream (crude oil) prices in the international market. The demand for the product declined along with varying crude oil prices in the domestic market. The inflation rate stabilized, yet the overall Styrene market followed the southward momentum. With increasing energy prices and a slow employment rate, the demand for the product declined amidst the seasonal changes occurring in the region. Polymer and Styrene industries showcased slow demand impacting the final prices of Styrene in the European market.
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.
