The dropping styrene demand in the United States had offset a slight tightening in supply last week, market players told SSESSMENTS.COM. The demand decline is a result of slowdowns in the construction, automotive, and appliance industries. Demand for packaging applications saw a surge in April, but it declined to pre-pandemic levels in May. Demand is expected to receive support after major automakers reopen their factories this month.
The demand fall also outweighs a slight tightening in supply after INEOS Styrolution decided to keep its plant in Texas shut, reportedly due to the current unfavourable market dynamics. The plant was closed in March for a planned turnaround and was initially scheduled to come online in April. Meanwhile, AmSty restarted its second unit at its 953,000 tons/year plant in Louisiana.
Market sources informed SSESSMENTS.COM that spot export styrene prices were mostly steady last week. Market participants began talks on June volumes as most spot material from May production were sold. US May styrene contracts settled little lower last week due to declining benzene prices.
