With the fundamentals still strong, the daily spot price of styrene in Europe has soared nearly 30% in the past two weeks, reaching the pre epidemic level and becoming the peak in 2020.
At the beginning of October, the spot price was $600 / ton, but less than six weeks later, the average price reached $900 / ton on the 10th of this month, because the bid was $850 / ton, and the offer soared to $950 / ton.
Due to the good export demand to Asia and the reduction of import volume caused by the hurricane along the Gulf of Mexico in the United States, the spot shortage of styrene in Europe was found.
In addition, one manufacturer, which is in the process of scheduled downtime, has delayed restarting, while another is still on schedule.
The stable crude oil price and the more optimistic demand outlook after the news of Pfizer's efficient covid-19 vaccine also contributed to the recent rally.
The news of the vaccine is likely to change the state of the global economy, bring hope for a sustained and extensive recovery, and may end the epidemic as soon as 2021.
The last time the average price was around 900 US dollars / ton was in January; the World Health Organization (who) declared the coronavirus a global pandemic on March 11.
After January 21, as the epidemic first hit China, Asian demand slowed and prices began to fall.
The $900 / T price in January and this week is the highest average price of styrene so far in 2020.
As the epidemic spread to Europe, prices began to fall rapidly in February.
Europe's spot styrene price fell the most in March, as the European epidemic related blockade weakened demand and sentiment.
Prices bottomed out at the end of March and recovered slowly before the end of July.
Since then, prices have been under downward pressure until early October, when prices began to rise again as Asian prices rose.
Manufacturing in the region has performed well in the past few weeks; demand has surged in China after the National Day Golden Week holiday.
With the rise of Asian prices, global prices continue to strengthen in the tight market.
Source: Chemical Network
