In Europe, Styrene Monomer prices increased on Wednesday, December 21, after witnessing a  decline from the last two quarters. Firmer upstream crude oil prices and positive regional demand patterns drove the sudden price increase.

FOB Rotterdam Styrene prices were assessed at USD 1145-1155/MT on Wednesday, up USD (+80/MT) from the levels evaluated on Tuesday, December 20. In the meantime, upstream Benzene prices on Wednesday were estimated to be increasing on a FOB Rotterdam, a sharp USD (+80/MT) increase over the previous week.

Asia's Styrene prices, meanwhile, were assessed at levels of USD 1005-1015/MT FOB Korea on Wednesday, remaining constant from levels assessed on Tuesday.

Despite the significant drop in spot quotations at the end of November 2022, the Styrene contract for November only slightly climbed by USD 4/MT after the increase in the Benzene prices. Numerous European plants have reduced their capacities, mainly as Böhlen, Germany's output is apparently at a halt.

Additionally, the U.S.-based plastics manufacturer Trinseo announced to permanently shut down its Styrene plant. A lack of imports is also seen in the U.S., where two plants have shut down due to excessive operating expenses. The downstream polymer sectors are experiencing sluggish Styrene demand due to the recession and inflationary worries; hence, the end-user market demand is declining.

As per ChemAnalyst, by 2023, spot interest in the European Benzene and Styrene markets is anticipated to rise as producers and consumers lose interest in contractual volumes. Two large European petrochemical manufacturers have suggested that the prices may surpass the USD 500/MT peak during the last months of 2022. According to one of the European producers, spot prices are expected to become more volatile in 2023 as the market pushes for more imports and reduces contractual commitments, but it would be hard to supply the European market with Styrene imports alone.