The Styrene market in the Netherlands has been highly volatile this March. This came after the announcement to permanently shut down the Propylene Oxide Styrene Monomer (POSM) unit at Maasvlakte. The unit, operated together by LyondellBasell and Covestro, has been active in the Rotterdam region since 2003. The POSM process is one of the methods used to produce Styrene.

The shutdown process will be carried out gradually and is expected to be completed by the end of 2026. Concerns have raised over the stability of Styrene supply in the region due to this closure. This decision has been taken because of higher production capacities globally. Increased production costs in Europe are the other reason for this conclusion. The shutdown is expected to change the Styrene supply situation in Northwest Europe.

In the first week of March, Styrene prices in the Netherlands increased sharply by 9.5%. This was due to limited supply and strong demand from the packaging and automobile companies. Regional producers operated at moderate capacities, keeping inventory levels low. This situation led to a positive market sentiment. However, during the third week, prices fell by over 6%. This major decrease was due to the announcement of the plant closure and changing trade dynamics.

The phased shutdown has started to reduce domestic production, but Styrene imports from Asia are increasing. These imports are supported by favorable trade opportunities. They have partially filled the supply gap in the region. Market players are now more cautious. Styrene users are relying on short-term contracts instead of bulk spot purchases. This shift is due to the growing uncertainties in the area.

Looking forward, Styrene prices in the Netherlands are expected to rise slightly in April. An increase of approximately 1% is anticipated. Limited supply and strong demand from the packaging and automobile sectors will be the reason for this growth. However, prices may fall from May. A significant decrease of about 3% is expected in June. This will be due to the restart of idled production units in Europe. Growth in Styrene imports and weaker feedstock markets might be the other factors.

Seasonal slowdowns in industrial activity may further reduce the prices. High inventory levels in the previous months will add to this downward trend. Gradual closure of the plant has caused structural changes in Styrene sourcing and pricing patterns. The full impact of this decision is still unfolding. For now, the Styrene market remains sensitive to supply and demand fluctuations. Market players are checking its impact on long-term availability and pricing trends in Europe.