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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.

INEOS Styrolution hikes prices. The company, a leading global manufacturer of styrenics, has announced significant price increases.

The increases of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) reflect higher costs of the monomer styrene.

Effective as of August 1st, 2023, the Gross Market Price for Polystyrene (GPPS) has risen by €120/MT compared to July 2023.

Meanwhile, the surcharge for HIPS remains at plus €110/MT.

The price increase corresponds with a hike in the cost of styrene, which saw its contract in August increase by €108/MT to €1405/MT.

GPPS (General Purpose Polystyrene) is commonly employed for crafting clear packaging solutions. HIPS (High Impact Polystyrene) stands out for its role in constructing robust refrigerator housings and other durable product casings.

INEOS Styrolution, Tomra, and EGN Entsorgungsgesellschaft Niederrhein are pioneering an alliance to turn polystyrene waste into packaging.

They are creating the world’s first large-scale facility in Krefeld, Germany, to convert post-consumer polystyrene waste into food-contact quality packaging.

The facility is expected to become operational by mid-2025 and process 40,000 tonnes of waste per year.

INEOS Styrolution will oversee the “super-cleaning” process, ensuring compliance with European Food Safety Authority standards.

EGN will manage the sorting and washing of the waste, and Tomra’s cutting-edge sorting technology completes the eco-triumvirate by ensuring a consistent feedstock supply from discarded food packaging.

This landmark initiative brings forth a new era of circularity in the recycling sector, promoting infinite recyclability and significantly reducing packaging taxes and licensing fees.

The project represents a major stride towards a sustainable future, contributing to a lower carbon footprint.