Episode 497: PODCAST: Europe styrenics hit by tight supply, strong demand plus Brexit stock-building

Europe styrenics are under intense pressure, with tight supply exacerbated by Brexit-related stock-building and logistics problems across the continent.

- Tight supply pressure building in recent months remains key concern for ABS and PS

- Lack of imports coming into Europe for both ABS and PS

- Increased exports taking material out of Europe for ABS and PS

- Coronavirus impact on transport and logistics adds further pressure

- Demand continues stronger than availability in both markets

- PS supply faces further pressure with a force majeure and a maintenance turnaround

- Brexit adding to the struggle for ABS and PS buyers trying to build stock levels

- Tight supply to continue into 2021, particularly for ABS which is likely to be short until end Q1

- Strong ABS demand to continue into 2021, PS demand expected positive for appliances going into 2021, packaging and construction views mixed

ICIS Deputy Managing Editor, Helena Strathearn and Markets Reporter Stephanie Wix look at the current market trends in the styrenics supply chain, including tighter supply for derivatives, particularly acrylonitrile-butadiene-styrene (ABS) and polystyrene (PS).

ABS is the largest volume engineering thermoplastic resin and is used in automobiles, electronics and recreational products.

General purpose PS is used in food packaging, disposable utensils, cutleries and various other consumer items. High impact PS is used in consumer electronics and toys while extruded PS is used in the construction industry as insulation.