Busan, South Korea: In the opening week of January 2024, Styrene markets in South Korea and China witnessed upward price trends exacerbated by manufacturing slowdowns during the holiday season. Both markets face challenges with heightened shipping costs. Foreign enterprises opt for immediate stock procurement over bulk purchases. Upstream crude oil and feedstock Benzene price increases support these markets. Conversely, the Arabian Styrene market maintains stability post-uptick, contending with increased shipping costs due to security concerns in the Red Sea.

In the initial week of January 2024, the South Korean Styrene market continued to witness an upward trajectory in prices. This surge is attributed to limited material availability and a constrained supply situation, primarily stemming from a recent slowdown in manufacturing activity during the extended holidays following Christmas and the New Year. The Korean Styrene market is currently grappling with heightened shipping costs and increased freight rates. Foreign enterprises are opting for immediate stock procurement over bulk purchases. However, recent increases in upstream crude oil and significant feedstock Benzene prices are noteworthy, providing support to the South Korean Styrene market. This advancing trend suggests a phase of an ascending price trend following an accumulation phase in pricing. Despite this, buyers are adopting a cautious approach in their procurement strategies, while sellers actively explore profit-taking opportunities by extending their positions during this initial phase. Additionally, recent demand for Styrene from downstream derivative industries such as EPS, PS, and the packaging sector remains steadfast, with buyers presenting moderate quotations for the product.

Similarly, The Chinese Styrene market experienced an upward price trend as the first week of Jan 2024 concluded. This price surge can be attributed to limited material availability and a constricted supply situation, particularly from the Middle East region. The regional market is grappling with heightened freight rates with increased import cost, due to longer route around prompted by security concerns following attacks by Yemen’s Houthi militants on commercial vessels in the Red Sea. Further, in the recent times upstream crude oil and major feedstock Benzene price has also gain strength in its pricing providing Styrene market a support. However, demand from the downstream industries remained moderate.

The Arabian Styrene market maintained its stability following a price uptick. Overseas market participants are adopting a cautious approach in their procurement strategies, utilizing available time and inventory levels for thorough research amid the ongoing market dynamics and ensuring a nuanced adaptation to the distinctive dynamics of the Arabian Styrene market. Compelling sellers to keep prices steady to facilitate trading. However, this stability suggests a consolidation phase in pricing, indicative of an accumulation phase. The local market is currently grappling with increased shipping costs and heightened freight rates for the overseas market participants attributed to longer routes chosen due to security concerns in the Red Sea.

Anticipating the Styrene market trends in the coming weeks, South Korea is likely to maintain its upward trajectory due to continued limited material availability and supply constraints following the holiday manufacturing slowdown. In China, an upward price trend is expected to persist, driven by constrained supplies, particularly from the Middle East, and increased import costs due to security concerns in the Red Sea. The Arabian market is anticipated to sustain stability amid cautious overseas procurement strategies, reflecting ongoing market dynamics. This outlook aligns with an accumulation phase in pricing.