Bullish Raw material price will likely to surge the prices of Polystyrene for February 2022 in Saudi

In this week, the prices of Polystyrene were observed to 1942/ton Ex-Riaydh with the increment of 1.13% compared with December where prices were $1920/ton Ex-Riyadh. With the reviving market dynamics and increasing downstream sector it is expected that SABIC along with major Polystyrene producer in Saudi Arabia will increase the prices of Polystyrene along with its feedstocks mainly Ethylene, Benzene and Styrene Monomer. In February 2022, the prices of Polystyrene can increase by 5% to 7% and can observed to be hovering around $2040/ton- $2077/ton Ex-Riyadh.

With the recovering demand and increasing domestic demand the prices of Polystyrene may increase by another 5%-7% by February 2022. The downstream market is observed to be escalating in Saudi Arabia where the product is being used in making appliances and other electronic things. Scrutiny by End user Industries was also developed as Benzene, which is one of the feedstocks of Polystyrene can be recycled many times and used in the same process. It is also heard that major Polystyrene producing industries in Saudi Arabia like SABIC can increase its Polystyrene prices with inclination in the feedstock prices namely, Benzene and Styrene monomer. Higher Polystyrene prices coupled with skyrocketing demand among the end users may leads to price hike in the next month.

According to ChemAnalyst, major market players expect the market activities to recover soon, while seller hope to see a pickup in buying interest in February 2022. With the more competitive prices among the local producers due to increasing demand the sellers may willing to deplete their existing stocks. Promising demand outlook amid strong economic sentiment, with some players voicing stronger projection for the coming month. IN South Africa, which is the largest market accounted for more than 19% in Middle East the prices in that region will also expected to revive and Saudi traders can increase the export prices of Polystyrene.