Styrene

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Discover the factors influencing styrene markets

The multitude of factors which affect styrene markets at a local, regional and global level include upstream activity, particularly in the benzene market, plant operating capacity and status, macroeconomic factors and trends downstream in packaging and production. It is a lot to keep track of. The slightest shift can prompt a response which affects styrene prices and trade.

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Styrene news

SI Group's debt exchange leads to another default – Fitch

HOUSTON (ICIS)–SI Group completed another debt exchange, which led Fitch Ratings to determine that the company defaulted again, the ratings agency said on Wednesday. Fitch considered SI Group's offering a distressed debt exchange and found that the company was once more in restricted default. Fitch has since rated SI Group CCC, which is four notches above default. During the first half of 2024, SI Group saw declines in sales and earnings before interest, tax, depreciation and amortization (EBITDA), Fitch said. The declines were caused by weak demand, destocking in 2023 and increased competition from new plants in China. Sales volumes should remain low and free cash flow should remain negative throughout Fitch's forecast horizon. SI Group could face a liquidity crisis, and it may need fresh third-party support within the next 24 months, Fitch said. SI Group makes specialty chemicals used in coatings, adhesives, sealants and elastomers (CASE) as well as in lubricants, fuels, surfactants and polymers. Other chemical companies are also coming under increased stress from low-cost imports. INEOS Styrolution plans to shut down a plant in Addyston, Ohio state, US, that makes acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN). Decommissioning will start in the second quarter of 2025. INEOS Styrolution is also permanently shutting down a styrene plant in Sarnia, Ontario province, Canada. That plant was idled earlier this year after complaints about benzene emissions, which led to a dispute with regulators. In addition, China, once a key outlet for North American styrene, has added significant styrene capacity over the past three years. Additional reporting by John Donnelly

30-Oct-2024

Americas top stories: weekly summary

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 25 October. Earlier unplanned outages contributing to tight US MEG, DEG supply in Q4 US monoethylene glycol (MEG) and diethylene glycol (DEG) spot availability is expected to remain snug through Q4, while concerns are growing for triethylene glycol (TEG) supply as peak season begins. US Sherwin-Williams expects choppy H1, sees signs of consumer weakness Sherwin-Williams expects demand during the first half of 2025 will remain choppy while the company waits for what it expects will be an inevitable inflexion point for demand for its products, the US-based paints and coatings producer said on Tuesday. Mexico's Orbia lowers 2024 guidance, PVC group reports flat Q3 income Orbia's vinyls business reported on Wednesday that Q3 operating income was flat year on year amid lower costs for ethylene and electricity as well lower volumes and prices. Styrolution to permanently shutter Sarnia styrene plant next year INEOS Styrolution has decided not to restart its 445,000 tonnes/year styrene production plant in Sarnia, Ontario, Canada, and will permanently shut it down by early Q4 2025, the company announced Thursday. Chlor-alkali demand benefited from hurricanes, new pulp plants – OlinDemand for chlorine derivatives and caustic soda benefited from US hurricanes and two new pulp and paper plants that opened in South America, which provided some bright spots in what has otherwise been a challenging market due to the slowdown in home building and durable goods, US-based Olin said on Friday.

28-Oct-2024

FAKUMA ’24 PODCAST: Mixture of pessimism, cautious optimism for 2025

LONDON (ICIS)–Markets Editor Stephanie Wix is joined by Senior Editor Manager Vicky Ellis, markets reporter Meeta Ramnani, and Senior Analyst Jincy Varghese, as they discuss the key trends from the 29th Fakuma plastics processing trade fair in Friedrichshafen, Germany, in this latest ICIS podcast. They explore discussion topics heard at the event last week, from the highest concerns to the lowest expectations. They also explain the clash of pessimism and optimism between markets including acrylonitrile butadiene styrene (ABS), polycarbonate (PC), polyethylene (PE) and polypropylene (PP), and also engineering plastics polyacetal (POM) and polybutylene terephthalate (PBT).

22-Oct-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 October. China VAM exports may slow throughout October By Hwee Hwee Tan 14-Oct-24 16:55 SINGAPORE (ICIS)–Persistent increases in China’s vinyl acetate monomer (VAM) domestic prices have pushed up spot export offers, dampening buying interest for Chinese cargoes in Asia this month. China Sept crude imports dips 0.6 on year; down 7.4% on month By Fanny Zhang 14-Oct-24 17:51 SINGAPORE (ICIS)–China’s crude oil imports in September totaled 45.5 million tonnes, down by 0.6% year on year and lower by 7.4% from the previous month, official data showed on Monday. India Sept inflation at nine-month high; Aug industrial output shrinks By Priya Jestin 14-Oct-24 22:46 MUMBAI (ICIS)–India’s retail inflation hit a nine-month high of 5.49% in September, mainly on firmer food prices, while the country’s industrial output in August shrank for the first time in 22 months. Oil prices fall by more than $3/barrel on abating Mideast tensions By Nurluqman Suratman 15-Oct-24 14:57 SINGAPORE (ICIS)–Oil prices fell by over $3/barrel on 15 October on moderating concerns over potential supply disruptions, following news that Israel may refrain from targeting oil facilities in Iran. Asia fatty alcohols demand to remain firm near term despite proposed EUDR delay By Helen Yan 15-Oct-24 16:41 SINGAPORE (ICIS)–Asia’s fatty alcohol mid-cuts demand is expected to remain firm in the near term despite the proposed one-year delay in the implementation of the EU Deforestation Regulation (EUDR). Asian synthetic rubber discussions in limbo as buy-sell differences deepen By Ai Teng Lim 16-Oct-24 13:28 SINGAPORE (ICIS)–Spot trade liquidity for Asian spot imports of various synthetic rubbers, from styrene-butadiene-rubber (SBR), polybutadiene rubber (PBR) and acrylonitrile-butadiene-rubber (NBR), are tapering amid widening differences in near-term pricing outlook between buyers and sellers. Asia BG demand expected to stay weak in Q4 By Joy Foo 17-Oct-24 13:22 SINGAPORE (ICIS)–The gap between China and southeast Asia butyl glycol (BG) import markets narrowed in October as lackluster demand has weighed down southeast Asia's import discussions. India petrochemicals demand subdued pre-Diwali; weak rupee effects unclear By Jonathan Yee 18-Oct-24 13:00 SINGAPORE (ICIS)–India's petrochemicals demand is losing momentum, hindered by the prolonged monsoon season, economic uncertainty, and volatile crude prices.

21-Oct-2024

VIDEO: China's SM market to remain oversupplied, awaits stimulus

SINGAPORE (ICIS)–Watch ICIS analyst Aviva Zhang discuss the implications of China's growing styrene monomer (SM) capacity, which is poised to open up export opportunities for the remainder of 2024. Chinese SM capacity currently at over 20 million tonnes/year; market pressured by new capacity ⁠Downstream acrylonitrile-butadiene-styrene (ABS) margins still negative while polystyrene (PS) margins are constrained Implementation of new macroeconomic policies is expected to stimulate end-use demand, which players are closely watching ICN

15-Oct-2024

SHIPPING: Asia-US container rates fall further; trend expected to continue post-ILA strike

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US continued to fall after a lengthy strike was averted at US Gulf and East Coast ports and as peak season volumes have largely been pulled forward. The International Longshoremen’s Association (ILA) strike lasted just three days, and market analysts expect backlogs created by the work stoppage to be cleared up in two to three weeks, or even less at the Port of New York/New Jersey. Some ports extended gate hours to allow more time for containers to be delivered or picked up. Nathan Strang, the US Southwest director of ocean freight for Flexport, said the company is seeing relatively fluid terminal operations and railroad operations. Strang said all detentions and demurrage rules from the Federal Maritime Commission (FMC) remain in effect but noted that time frames for detention and demurrage restarted on 7 October after the strike ended. CONTAINER RATES FALL Global average rates for shipping containers continued to fall, according to multiple analysts. Supply chain advisors Drewry has its World Container Index (WCI) at $3,349/FEU (40-foot equivalent unit), which is down by 4% and shown in the following chart. Drewry said Shanghai to Los Angeles container rates fell by 5%, and Shanghai to New York rates fell by 3%, as shown in the following chart. Following the tentative deal between the ILA and the ports, Drewry expects rates ex-China to continue to decrease marginally in the coming weeks. Online freight shipping marketplace and platform provider Freightos said rates fell by a larger degree, but its rates had been higher. Judah Levine, head of research at Freightos, said carriers are also planning to reduce deployed capacity on the transatlantic trade lane later in the month in the hope of preventing rates from falling back to the $1,600-1,800/FEU level they had maintained for much of the year. “With the strike over and peak season demand largely behind us from a significant pull forward of volumes in the last couple months, transpacific container rates should continue to ease on the seasonal lull in volumes between peak season and Lunar New Year,” Levine said. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES UNCHANGED US chemical tanker freight rates held steady again this week for most trade lanes, even though vessel demand is growing for some routes. Most rates from the major chemical hubs remain sideways as a good portion of the market were attending the European Petrochemical Association (EPCA) conference in Berlin. The USG to Asia lane was also quiet following holidays. Although it is likely that increased exports ex–USG will be seen going into Europe and Asia, primarily as clean petroleum products (CPP) tonnage continues to focus on alternative cargoes in the petrochemical space, thereby adding to spot availability, which is already well supplied. On the transatlantic front, the eastbound leg is expected to warm up with cargoes being quoted including styrene to ARA from several US Gulf ports. With additional reporting by Kevin Callahan Visit the ICIS Logistics – impact on chemicals and energy topic page

11-Oct-2024

FAKUMA ’24 PODCAST: EU’s economic struggle and ADNOC’s Covestro takeover hot topics ahead of plastics fair

LONDON (ICIS)–Markets editor Stephanie Wix and reporter Meeta Ramnani join senior editor manager Vicky Ellis to pick out key themes ahead of the 29th Fakuma plastics processing trade fair in Germany, in this latest ICIS podcast. They discuss the clash of pessimism and optimism for acrylonitrile butadiene styrene (ABS), the changing European landscape for polycarbonate (PC) given ADNOC’s recent offer for Covestro, and pressure from cheap imports for PE and PP and engineering plastics polyacetal (POM) and polybutylene terephthalate (PBT). Fakuma runs from 15-19 October.

11-Oct-2024

China petrochemical futures rally on fresh economic measures

SINGAPORE (ICIS)–China’s petrochemical futures markets surged on Tuesday following announcement of fresh measures to rev up activity in the world’s second-biggest economy. As the close of trade on Tuesday, polyvinyl chloride (PVC) was leading the charge in China’s domestic futures market, with a 3.3% increase, with seven others also posting strong gains. Product Prices at close of trade (CNY/tonne) % change from 23 Sept Linear low density polyethylene (LLDPE)                                   7,969 1.2% Polyvinyl chloride (PVC)                                   5,388 3.3% Ethylene glycol (EG)                                   4,459 1.9% Polypropylene (PP)                                   7,360 1.4% Styrene monomer (SM)                                   8,559 0.7% Paraxylene *                                   7,012 2.4% Purified terephthalic acid (PTA)*                                   4,930 2.2% Methanol*                                   2,396 1.6% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Shares of major Chinese chemical producers traded in Shanghai and Shenzhen bourses also increased, welcoming the central bank’s economic measures. Company  Closing prices on 24 September (CNY/share) % change from 23 Sept Hengli Petrochemical 13.12 5.4% PetroChina 8.36 4.4% Rongsheng* Petrochemical 8.84 4.1% Satellite Chemical* 16.08 7.7% Sinopec 6.76 4.3% Wanhua Chemical 78.96 4.4% Sources: Shanghai and *Shenzhen bourses The Shanghai composite index surged by 4.15% to close at 2,863 on Tuesday. It was the index’s biggest single-day rally since 6 July 2020. People’s Bank of China (PBoC) governor Pan Gongsheng announced in a press conference the new economic measures, which include cuts on banks’ reserve requirement ratio (RRR), key policy rate and mortgage rates to revive the economy. China's economic weakness has been a major drag on overall sentiment across the equities and commodities markets this year. “The move [basket of stimulus by China’s central bank] is bold by historical standards and came earlier than we had expected,” said Betty Wang, lead economist at UK-based Oxford Economics, in a research note on Tuesday. “The policy measures include cuts to the policy rate and reserve requirement ratio (RRR), adjustment to mortgage lending and policy support to stock market,” Wang said. “The continuous weakness in domestic economy and the outsized rate cut from the [US] Federal Reserve were the likely catalysts behind the PBoC's latest move,” the economist said. This is the first time since the COVID-19 pandemic that the central bank offered a combination of rate cuts, RRR cuts, and structural monetary policies as stimulus measures. A 20-basis point (bps) interest rate cut in the 7-day reverse repurchase (repo) rate and a broad-based 50bps RRR cut are also rare, Oxford Economics noted. Focus article by Fanny Zhang ($1 = CNY7.04) Thumbnail image: At a container terminal at Lianyungang Port in east China's Jiangsu Province, 18 September 2024. (Shutterstock)

24-Sep-2024

Brazil increases import tariffs for more than 80 chemical, fertilizers products

SAO PAULO (ICIS)–The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials. Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET). See bottom list for details. Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year. The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur. The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals. The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar. Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share. Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex. “[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS. “We will continue to fight to ensure that these unreasonable measures are reversed.” Product Current Tax Rate Proposed Tax Rate Plaintiff Phosphoric acid with iron content less than 750 ppm 9% 17.5% Abiquim Sodium hydrogen carbonate (bicarbonate) 9% 20%* Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Elekeiroz Inc. Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Abiquim Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Rhodia Brasil SA Butanone (methyl ethyl ketone) 10.80% 20% Abiquim Ethyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Rhodia Brasil SA Other saturated acyclic monoalcohol acetates, c atom <= 8 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Unigel Holdings Inc. Adipic acid 9% 20% Abiquim Adipic acid 9% 20% Rhodia Brasil SA Maleic anhydride 10.80% 20% Abiquim Maleic anhydride 10.80% 20% Elekeiroz Inc. Fumaric acid, its salts and esters 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Elekeiroz Inc. Dinonyl or didecyl orthophthalates 10.80% 20% Abiquim Hexamethylenediamine and its salts 10.80% 20% Abiquim Monoethanolamine and its salts 12.60% 20% Abiquim Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, with filler 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, without filler 12.60% 20% Abiquim Other unfilled polyethylenes, density >= 0.94, in primary forms 12.60% 20% Abiquim Other copolymers of ethylene and vinyl acetate, in primary forms 12.60% 20% Abiquim Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94 12.60% 20% Abiquim Unfilled polypropylene in primary form 12.60% 20% Abiquim Propylene copolymers, in primary forms 12.60% 20% Abiquim Expandable polystyrene, unfilled, in primary form 12.60% 18% Abiquim Other styrene polymers, in primary forms 12.60% 20% Abiquim Other styrene polymers, in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by suspension process 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Alpek Polyester Pernambuco SA Other unsaturated polyethers, in primary forms 12.60% 20% Abiquim Ex – Surfactant polymer class preparation, silicone free 12.60% 12.60% Abiquim Ex – Solvent-free modified polyester class preparation 12.60% 12.60% Abiquim White mineral oils (vaseline or paraffin oils) 3.60% 35% Abiquim Silicon dioxide obtained by chemical precipitation 9% 18% Abiquim Silicon dioxide obtained by chemical precipitation 9% 17% Rhodia Brasil SA Other silicon dioxides 0% 18% Abiquim Commercial ammonium carbonates and other ammonium carbonates 9% 18% Abiquim Styrene 9% 18% Abiquim Styrene 9% 18% Unigel Holdings Inc. Butan-1-ol (n-butyl alcohol) 10.80% 20% Abiquim Butan-1-ol (n-butyl alcohol) 10.80% 20% Elekeiroz Inc. Propylene glycol (propane-1, 2-diol) 10.80% 20% Abiquim Dipropylene glycol 12.60% 20% Abiquim Triacetin 10.80% 20% Abiquim Triacetin 10.80% 20% Denver Specialty Chemicals 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Abiquim 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Elekeiroz Inc. Salts and esters of adipic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Elekeiroz Inc. Phthalic anhydride 10.80% 20% Abiquim Phthalic anhydride 10.80% 20% Petrom Petrochemicals Mogi das Cruzes S/A Ammonium nitrate, even in aqueous solution 0% 15% Abiquim Pigments and preparations based on these pigments 12.60% 20% Abiquim Linear alkylbenzene sulfonic acids and their salts 12.60% 23% Abiquim Organic surface-active agents, non-ionic 12.60% 23% Abiquim Alkylbenzene mixtures 10.80% 20% Abiquim Stearic acid (industrial monocarboxylic fatty acid) 5.40% 35% Abiquim Stearic alcohol (industrial fatty alcohol) 12.60% 20% Abiquim Sodium methylate in methanol 12.60% 20% Abiquim Other ethylene polymers, in primary forms 12.60% 20% Abiquim Filled polypropylene, in primary form 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by emulsion process 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Unigel Holdings Inc. Other polyether polyols, in primary forms 12.60% 20% Abiquim Other polyesters in liquids and pastes 12.60% 20% Abiquim Other polyurethanes in liquids and pastes 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Denver Specialty Chemicals Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms 10.80% 22% Abiquim Acrylonitrile-butadiene rubber in sheets, plates, etc. 10.80% 35% Abiquim Latex of other synthetic or artificial rubbers 10.80% 35% Abiquim  

19-Sep-2024

US Fed makes first cut since 2020; rate may reach 4.25-4.50% in Dec

HOUSTON (ICIS)–The Federal Reserve lowered its benchmark interest rate by a half point to 4.75-5.00% on Wednesday, and the central bank could lower it by an additional half point by the end of the year. The following table summarizes the current and past forecasts for rates, inflation and GDP by members of the Federal Reserve. 2024 2025 2026 Fed funds 4.4% 3.4% 2.9% June forecast 5.1% 4.1% 3.1% GDP 2.0% 2.0% 2.0% June forecast 2.1% 2.0% 2.0% Core PCE Inflation 2.6% 2.2% 2.0% June forecast 2.8% 2.3% 2.0% Source: Fed If the forecasts hold true, the US economy will achieve a soft landing, with inflation falling to the Fed's long-term goal of 2% without triggering a recession. FED NOTES WEAKER JOB MARKET, INFLATIONThe Fed said that the job market had slowed since the last time it voted on rates at the end of July. Inflation has moved closer to the Fed's goal but remains somewhat elevated. Unlike its previous statement in July, the Fed said it "has gained greater confidence that inflation is moving sustainably toward 2%". In addition, the Fed stressed its commitment to support maximum employment. Its last statement in July lacked such a statement. CHEMS WILL WAIT BEFORE RATES TRIGGER RECOVERY IN DURABLESChemical producers will have to wait before lower rates cause a recovery for demand in durable goods and housing. Both are key end markets for polymers such as polypropylene (PP), nylon, acrylonitrile butadiene styrene (ABS) as well as chemicals used to make polyurethanes, such as isocyanates, polyols and propylene oxide (PO). Huntsman said the lag is typically about two quarters. Ultimately, mortgage rates will need to approach 5% before markets for homes and durable goods can recover, according to Dow. Higher rates had made housing and durable goods like furniture and appliances less affordable. Because fewer consumers are buying homes and moving, they are purchasing fewer durable goods. LOWER RATES TEND TO BOOST OIL, CHEM PRICESTypically, prices for oil and other dollar-denominated commodities tend to rise as US interest rates fall. A rise in oil prices typically causes those for petrochemicals to increase. Margins for US-based producers benefit from higher oil prices because their plants predominantly rely on gas-based feedstock. By contrast, much of the world relies on oil-based naphtha, giving US producers a cost advantage. FIRST CUT IN MORE THAN FOUR YEARSThe last time the Federal Reserve lowered interest rates was in March 2020, during the COVID-19 pandemic. Lockdowns, government stimulus and recovery caused a surge in inflation, which led the Federal Reserve to begin raising the benchmark rate two years later in what became the most aggressive tightening campaign in more than 40 years. The Fed stopped raising the rate in July 2023. A year later, inflation started showing signs of approaching the Fed's target of 2%. At the same time, the labor market began cooling off and returning to more normal levels. Focus article by Al Greenwood Thumbnail shows money. Image by ICIS.

18-Sep-2024

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