The market sentiments of crude oil showcased discrepancies in the global market because of the ongoing strike between Russia and Ukraine. This war has shown its impact worldwide, affecting several production companies' operational rates. Crude oil is an essential element required to produce benzene, the upstream component of Styrene Monomer, apart from ethylene proportionally impacting EPS prices. Polystyrene is required to produce Expanded Polystyrene, the downstream element of the Styrene Monomer.

Expanded Polystyrene has always been in huge demand from the downstream sectors such as packaging, insulation, and others. The reason behind the same is the properties of EPS, such as being flexible, sustainable, and lightweight, which governs the variations in the EPS market. In the North American market, the prices of EPS have witnessed a hike owing to the feedstock, benzene, and ethylene shortage, forcing the major manufacturers to increase the production margin of EPS. In the US market, the crude oil and fuel stock have dwindled, surging the prices of the same in the domestic market, consequently increasing the prices of EPS. Furthermore, the downstream sectors will witness a shortage of products in the upcoming weeks as one of the major producers, BASF, will be closing the EPS recycling loop. In the Asia-Pacific region, the market sentiments of EPS followed the stagnancy as the production of EPS came to a temporary halt after the imposition of lockdown in China. Supply shortages may occur for the major producers in the Asian market as CPC Corporation, a benzene plant in Taiwan will be under maintenance, resulting in a low production rate in the domestic market.

Moreover, crude oil supply disruption from Libyan has cut short the quantity of crude oil on a global basis. In the European region, the market sentiments of EPS were governed by the spiked feedstock, polystyrene prices, and robust demand from food packaging, home appliances, and insulation industries. These facets have impacted the global market for Expanded Polystyrene.

According to ChemAnalyst, prices of EPS may continue to follow the uptrend in the upcoming weeks along with the increase in the prices of crude oil and its downstream elements. Surging demand from the insulation and packaging industry will become the driving force for any variations in the EPS market sentiments.