News
27/03/26
US styrene exporters move to fulfill supply constraints
Houston, 27 March (Argus) — US styrene monomer (SM) exporters are working to
fill widening supply gaps in Europe following the outbreak of the Mideast Gulf
war, which has impeded vessel traffic through the strait of Hormuz and sharply
reduced Middle East SM export flows. The global supply constraint has pushed US
styrene to a nearly two-year high just days before the start of the American
Fuel & Petrochemical Manufacturers' International Petrochemical Conference in
San Antonio, Texas, from 29-31 March 2026, where industry participants gather
from around the world to discuss pertinent topics in petrochemical markets and
construct forward-looking views for the forthcoming year. Producers in the
Middle East make up a significant portion of global styrene trade. Saudi Arabia
accounts for 44pc of China's SM imports, 40pc of India imports and 33pc of
European imports, according to Global Trade Tracker data. Europe has been
particularly exposed as shipments through the Mideast Gulf have slowed down.
European SM prices have risen by 40pc since the start of the conflict because of
tight SM supply, reaching $1,697.50/t on 26 March, according to Argus data. US
SM prices increased by 27pc over the same period to $1,450/t, opening the paper
arbitrage from the US Gulf coast (USGC) to Europe. Heading into April, US
exporters are attempting to secure more vessels for trans Atlantic shipments,
but tight tanker availability has created significant export bottlenecks, market
participants said. Bulk freight shipping availability from the USGC to northwest
Europe and the Mediterranean remained restricted in March, pushing freight rates
sharply higher. Estimated shipping costs from the USGC to Europe nearly doubled
to around $140/t this week from $72/t in February. Estimated North American SM
operating rates ranged from 56-60pc this week, according to a generic Argus
model with run rates pegged by market participants. Operating rates have been
reduced because of planned maintenance at two USGC SM plants: SABIC and
TotalEnergies' joint venture facility in Carville, Louisiana, and Ineos
Styrolution's plant in Bayport, Texas. The Carville, Louisiana, unit is expected
back on line in early April, potentially lifting regional rates to around 65pc,
but US Gulf coast spot availability remains limited. Sources estimate roughly
5,000 metric tonnes of SM is available for April spot sales without producers
drawing from their derivative units. Export constraints are compounded by a
heavy global turnaround season. At least two US SM units are in planned outages,
two Saudi Arabian plants were scheduled for maintenance in March and at least
two European feedstock ethylene crackers underwent work in the first quarter.
More recently, Saudi Arabian state-controlled petrochemicals producer [Sabic has
declared force majeure]
(https://direct.argusmedia.com/newsandanalysis/article/2806297) on its methanol
and SM sales, effective 26 March, citing logistics disruptions stemming from the
ongoing US-Iran war and impeded vessel traffic through the strait of Hormuz.
Tight SM supply has begun to filter into downstream markets. Polystyrene (PS)
and acrylonitrile butadiene styrene (ABS) producers are entering a seasonably
stronger demand period with higher pricing. The impact is expected to ripple
through consumer goods such as plastic take-away containers, disposable cutlery,
foam packaging and ABS based products including toys and Lego bricks, sources
said. As the US and global styrene turnaround season continues, market
participants expect inventories to remain tight until domestic maintenance wraps
up in the second quarter. Global SM availability is likely to stay constrained
while vessel shortages persist and shipments remain restricted through the
strait of Hormuz, sources said. By Jake Caldwell Send comments and request more
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