Geopolitical conflict drives SIS prices to Q1 peak, gradual correction likely in Q2

Geopolitical conflict in the Middle East drove Q1 prices to record highs. WTI crude futures surged 78%, isoprene prices jumped 68%, and SIS offers rose 35%. With tensions easing in April but actual feedstock relief still weeks away, high costs will support SIS prices, limiting sharp declines and pointing to a gradual correction in Q2.

Strait of Hormuz disruptions triggered supply panic, pushing WTI crude up 78% in Q1 and lifting isoprene and SIS prices to highs. Though tensions eased in April, actual feedstock arrivals will take time, making a sharp SIS price drop unlikely, a slow correction is expected. China SIS Market Price, 2024-2026