For the Quarter Ending June 2023
North America
The Q2 2023 started with increase in price trend with increase in market fundamentals and high purchasing activities. In May 2023, the price of Styrene Copolymer surged to USD 1700/ton FOB Louisiana. In the USA, the traded price of Styrene-Copolymer assessed an incline price trajectory in the wake of expected support from downstream Coating and Adhesive industry. Inadequate supplies of product in domestic ports have been observed, lack in records level disturbed the market supply added to gradual increase in trading activities in the region. However, during June 2023, the prices slipped in the wake of low trade volume and high inventory level. The demand expectation from the downstream coating and adhesive producing industries observed low. According to market participants, there were no supply difficulties which resulted in the inclining inventories in the market. Additionally, the declining feedstock styrene price and continuous dipping demand pressure prompted market participants to keep the prices on the weaker side to keep the prices economical.
Asia Pacific
When compared with the previous quarter, the price of Styrene Copolymer in the Asia Pacific region slumped with low purchasing activities and low trade volume among the significant manufacturing units. Styrene Copolymer domestically traded price in the Asian market showed a decline in price as a result of lower demand from the adhesive and coating industries downstream. The material's healthy availability, on the other hand, had reduced the gap between demand and supply, allowing buyers to offer lower bid prices. However, the suppliers were also compelled to alter the product's price due to the lower cost support provided by upstream crude oil price. In addition, sellers are offering discounts to increase the market transactions. Adequate supplies of product in domestic ports kept the market oversupplied despite low demand amid feeble purchasing activities. Meanwhile, the market fundamentals remain bearish. With it, Suppliers continued to receive inquiries about the product with sufficient stocks. In terms of downstream market, the automobile and housing sectors thrive in the Asian market and the requirement of product slumped.
Europe
Recession fear and economic uncertainty in the European market had affected the market trading fundamentals in the wake of bearish purchasing activities. The disruption between supply and demand forced the producers to decline the price trend. Significant manufacturing units remain skeptical about increasing the prices along with cautious stance from the downstream enterprises. The consumption of Styrene Copolymer from the downstream Automobile market also started to decline, and suppliers began to trade the product on an immediate basis. The value chain of Styrene showed a downward trend with weak market fundamentals and a plummet in trading activities. In Germany, Styrene Copolymer prices declined due to adequate inventories and subdued demand. Supplier interest waned as they viewed a slowdown into Q2 2023 and faced a lack of demand for new supply. With declining energy and utility costs, feedstock Styrene producers operated their operation units at significantly reduced rates to avoid further stockpiling. Exports from Germany to the European region significantly declined, and suppliers remained reluctant to increase prices.
For the Quarter Ending March 2023
North America
The Styrene Copolymer market had opposing viewpoints in the first quarter of 2023 as a result of shifting upstream (crude oil) prices in the local market. Styrene Copolymer prices increased towards the end of the quarter as a result of an expanding demand-supply gap and rising crude oil prices. Supply chain problems and labor scarcity in the US made the situation worse. The production rate of styrene copolymer in the local market was impacted towards the end of the previous quarter by the Brazil carnival and the lowering temperatures. The ultimate prices of Styrene Copolymer in the US market in Q1 2023 were impacted proportionally by the downstream buyers' reduced purchasing activity.
Asia-Pacific
Styrene Copolymer prices in the Asia-Pacific market have been steadily declining due to a low production rate. The first quarter saw a drop due to lower upstream (crude oil) prices in the international market; as a result, suppliers and end users hoarded the product. Additionally, the product's weak February demand had a proportionate effect on the ultimate costs. Additionally, there were other difficulties in the second half of the quarter, including a slow supply chain and trucker strikes in South Korea. Due to COVID restrictions and sluggish product demand, the Chinese market was quiet for the entirety of the quarter. Fewer queries were made to suppliers, which had an effect on the Asian market prices.
Europe
The Styrene Copolymer market experienced unfavorable market sentiments throughout the first quarter of 2023 as a result of shifting upstream (crude oil) prices in the global market. Along with fluctuating crude oil prices in the domestic market, the product's demand fell. Despite the stabilization of the inflation rate, the market for Styrene Copolymers continued to go downward. In spite of local seasonal fluctuations, the demand for the product decreased due to rising energy costs and a low employment rate. Slow demand was evident in the styrene copolymer industries, which affected the ultimate costs of the material in the European market.
For the Quarter Ending December 2022
North America
Prices for Styrene copolymer have decreased throughout Q4 of 2022, and as a result, there has been little change in the product's price across the US market. This offers continued low-price volatility for the remaining months of the quarter. In the US market in December, Styrene copolymer prices were seen to be stable at USD 1700/MT on the FOB basis. During that time, traders and suppliers on the domestic market had a greater supply of styrene copolymer than the market's existing inventory. According to reports, the offtakes and production rates fell along with the downstream inquiries.
Europe
Throughout the last quarter of 2022, the Styrene Copolymer market displayed unfavorable market sentiments. Styrene Copolymer prices remained low due to variable demand in the regional market and moving upstream crude oil prices on the worldwide market. Despite modest stabilization of the European region's inflation rate during the quarter, the cost of styrene copolymer kept falling. Freight rates in the European region decreased by 2%, which had an impact on market sentiments and relieved the cost pressure from rising polymer costs.
APAC
During the fourth quarter of 2022, a significant fall in demand for styrene copolymers was seen in the Asian Pacific market. Although the demand, which remained largely poor during the quarter, was the only factor taken into account for downstream procurement. Additionally, the trading environment continued to be sluggish, which contributed to the slowness of Indian inquiries. As a result, southeast Asian market trading remained sluggish, and Chinese traders maintained their caution as they had heard about the multinational players offering discounts on their cargo. Additionally, Q4 saw a series of downturns in upstream pricing, which aided producers in stepping up production and later stockpiling, resulting in an abundance of supplies in the area.
For the Quarter Ending September 2022
North America
Following the trend from the previous quarter, the price of Styrene Co-polymer continued to decline in the H1 of the third quarter of 2022. The US cosmetics and personal care segment have also been quiet, dulling the country's market. Styrene and its derivatives are now less expensive due to reduced feedstock costs and a drop in demand in the US market. So, at the start of the second half of the quarter, the lack of feedstock and the slower production rates temporarily raised product price quotations. However, the price trend once more leaned lower near the close of Q3. Additionally, the demand from the packaging and cosmetics industries was low throughout the period. In the USA, the Styrene Copolymer price was assessed at around USD 1840/MT during September 2022.
Asia
Like the previous quarter, Styrene Co-polymer's pricing trend in Asia was unfavorable. As a result of manufacturing being reduced initially on government orders owing to summer heat waves and power disruptions, product prices declined substantially. Additionally, because of higher inventory levels, the costs of the SAN's primary raw materials, Styrene and Acrylic Acid, continued to be on the downside. However, the lackluster demand from downstream manufacturers, particularly producers, was the leading cause of the prices' sharp decline. Typhoon Hinnamor caused delays in deliveries and shipments at China's main cargo port. As a result, the product prices fell sharply and finally stabilized at USD 1514/MT in India.
Europe
Stable demand from the cosmetics and personal care industries contributed to the third quarter's pricing trend for Styrene Co-polymer in Europe. Pressure on European manufacturers came from the Russian exporters' limitation of input supplies, while local downstream producers decreased their operational rates in the face of growing inflation. The product offtakes remained low as a result. Additionally, upstream cost pressure was reduced due to the high inflation rate and the collapse of the feedstock Styrene during the middle of the third quarter due to lower product offtakes and higher domestic inventory levels. As per the data, Styrene Copolymer prices hovered around USD 2200/MT during the final week of September 2022.
During the second quarter of 2022, the market sentiments of Styrene Copolymer observed a decline in the North American market on the back of retarding feedstock prices in the domestic market. Benzene and ethylene prices were observed on the lower edge in the regional market, which proportionally impacted the Styrene Copolymer prices. These variations in the feedstock prices influenced the production cost of Styrene Copolymer. Furthermore, the demand from the automotive sector remained gloomy as chip shortages occurred in the regional market. This decline in demand and surging fuel prices led to retardation in the regional market. Another facet governing the market sentiments of Styrene Copolymer is the availability of feedstock with downstream manufacturers to cater to the domestic demand.
In the second quarter, the Asia-Pacific region observed a continuous decline in Styrene Copolymer prices. Crude oil prices in the international market played the key factors in any fluctuations in Styrene Copolymer prices as its downstream benzene prices also remained on the lower edge. Asian markets also witnessed a continuous decline in ethylene and natural gas prices. Countries such as China and Taiwan suffered from natural calamities, consequently halting the production rate of Styrene Copolymer. Variations in feedstock prices proportionally impacted the market dynamics of Styrene Copolymer in the regional market. Furthermore, weak demand from downstream sectors such as cosmetics and automobiles has led to lower operational rates and low production costs, significantly influencing regional market dynamics.
The prices of Styrene Copolymer also followed the downward trend in the European market despite the inflated commodity. Production activity in the European region remained slow throughout the quarter as the country faced a feedstock crisis. With the rise in crude oil and gasoline prices, the demand for automotive sectors remained quite proportionally, impacting the prices of Styrene Copolymer in the domestic market. As per the major manufacturers, end-users demand was low, which could be fulfilled with the available feedstock. Moreover, the inquiry about the product from end-use businesses was low, forcing the suppliers to decrease the market prices of Styrene Copolymer in the regional market.
