Shanghai, China- The government of China took a significant step by relaxing the COVID lockdown restriction after two months. From June 1, Shanghai, the commercial hub of China, will resume the transportation facilities and basic operations to bring back the hustle and its economy into the market. With this modification, the demand for crude oil will escalate in the upcoming days, proportionally increasing its retail prices in the Chinese market. This elevation will shoot up the prices of Styrene in the Asian market.

As per the ChemAnalyst data, the price dynamics of Styrene will continue to follow the upward trend in the coming days, along with the rising demand from downstream sectors. Crude oil is the primary element required during the production of Styrene. Benzene and Ethylene are the raw materials, and any erratic behaviour in crude oil prices will directly impact the prices of Styrene in the Chinese market. After the imposition of the lockdown in China, the factory movement in China declined more leisurely and may bounce back interest for energy and oil in the domestic market. The eased back decline resulted from Covid limitations getting loosened up in a few significant modern centre points. The news quickly pushed crude oil prices higher.

Accompanied by oil, the natural gas prices are also skyrocketing as the air-conditioning season is at its peak leading to burgeoning energy demand in the Chinese market. Consequently, the production cost of Styrene increased in China as feedstock and energy prices hiked. Moreover, the continuous demand for food packaging, insulation, and production of polystyrene became the driving force for the increment in the prices of Styrene in the Chinese market.

According to the ChemAnalyst analysis, the market dynamics of Styrene will increase in the regional market on the back of brisking demand and prices of crude oil and other commodities in the regional market in the upcoming days. Moreover, the manufacturers of containers and packaging sectors need the product; hence, the prices of Styrene will increase in the Chinese market.