EU styrene prices set for limited decrease. After experiencing an unprecedented surge in the September contract price, styrene monomer appears poised for a decrease in October.
The increase in September was largely the result of unexpected plant shutdowns that led to a market shortage in the European Union.
These events led to shortages, driving contract prices of styrene monomer up by €170/mt in September alone.
However, as production issues are beging resolved amid persistent low demand, market dynamics are changing.
The EU styrene market is gradually moving from a shortage situation to a balanced and arguably oversupplied position.
Consequently, there’s increasing anticipation for price decreases in October.
Despite these factors signaling a likely price reduction, other market elements are exerting upward pressure on costs.
Specifically, the prices of upstream products like benzene are receiving support from crude oil prices. These factors are likely to set a floor on how much styrene monomer prices can actually drop.
While the resolution of production issues and ongoing low demand might usher in some relief for buyers in the form of lower styrene monomer prices, the extent of these decreases is expected to be limited.