USGC benzene prices soar as styrene demand, energy volatility fuel uncertainty

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Before crude began driving up benzene prices in the Americas, another factor was already contributing: styrene demand.

US Gulf Coast spot benzene prices hit a two-year high after oil prices surged due to the war in Iran.

In addition to this cost pressure, styrene monomer has been driving benzene prices up on the demand side.

Aiming to compete with European prices in the export market, US producers built up inventories for the maintenance season.

This raised operating rates at styrene plants and raised benzene prices.

What could this mean? More price increases.

Styrene prices in the USGC have risen 59% since the beginning of the year, driven by supply shortages in the US and Europe.

What can we expect regarding demand for styrene?

At the World Petrochemical Conference, Kate Lee, senior principal analyst of aromatics at S&P Global Energy CERA, said global styrene demand is expected to rise 1% to 3% until 2030.

China should remain the main demand driver, along with emergent markets: Southern Asia, Turkey and Latin America.

It remains to be seen how long supply and demand will be subject to so rapidly changing conditions.