Global oversupply to keep Styrene Monomer prices stable in India – 23 Jun 2014

Despites considerable production capacity for Benzene in India, there isn't any installed production capacity for Styrene Monomer in the country. As such, the bulk prices in India are completely reliant on international prices and exchange rate fluctuations. Styrene finds major application in production of Polystyrene (PS) and Styrene Butadiene Rubber (SBR) in India.

Indianpetrochem comprehends from different traders in the market that the demand for Styrene is good from the resin and paint industries. However, the demand for Polystyrene, which made up for more than 30% of the end-user consumption of Styrene in India during FY 2012-2013, is weak at the moment due to the onset of monsoon.

There is a general consensus that the price of the aromatics is going to rise in the future as a consequence of the political turmoil in Iraq, infact the price of Toluene has already gained weight on  this account. But,  its expected that the price of Styrene is going to be indifferent to these global cues as there are good stock supplies for the chemical in the Middle East and other major Asian exporting countries.

A prominent PS manufacturer informed the website, " The booking prices of Styrene has remained steady at levels of $ 1,580-1,600 per metric tonne, with no expectation of a hike over and above this range due to ample stocks in neighboring Asian countries".

Over the past few months, the price of Styrene hasn't moved beyond Rs. 2- 4 per kg; at present the chemicals bulk price Ex- Kandla is Rs. 102 per kg (exclusive of all taxes). Going ahead, most traders expect the price to move primarily due to the exchange rate fluctuations.