Polystyrene prices witnessed a week-on-week hike of 0.7% and assembled at USD 1505/Tonne FOB Qingdao and USD 1446/Tonne Spot Ex-Qingdao as of March 25. The escalating prices of crude oil and natural gas due to the ongoing geopolitical tension elevated the costs of feedstock Benzene and ethylene in the global market. Styrene Monomer (SM) prices are also surging with strong market sentiments and a lack of product availability.

The demand for Polystyrene from downstream industries such as home appliances, food packaging and industrial packaging is blooming specifically in the Asia Pacific region, resulting in the price hike of the product. Rapid urbanization has increased the construction and electronic appliances demand where Polystyrene is used as a raw material, forcing the inventories to increase their demand, hence becoming the driving force for the hiked prices of Polystyrene. China being the major player of Polystyrene, seized its production temporarily because of the Omicron virus, and the implementation of zero covid policy, resulting in hiked production cost of the same. Port congestion is the ripple effect of China’s battle with the Omicron virus, causing a supply imbalance of Polystyrene in the global market. Accordingly, the freight charges in China soared, resulting in increased prices of Polystyrene. Moreover, the dispute between the Russia and Ukraine war affected the trade route which in turn increased the demand for Polystyrene globally.

According to ChemAnalyst, Polystyrene prices will increase in the global market by flooding upstream crude oil and Natural gas costs. Consequently, styrene monomer prices will also increase, directly affecting the downstream industries. Expanding the use of Polystyrene in packaging industries and electronic appliances will be the critical component expected to be the driving cause of increased Polystyrene prices.