Softer feedstock prices, appreciating INR to restrict upward PS price movement in India – 2 Jun 2014

PS buyers in India are not likely to face upward price pressure in the coming days as there seems to be no likelihood of the price traversing northwards ; instead the price is likely to soften due to falling Styrene prices in key Asian regions, and remarkable appreciation of the Indian currency rendering landed costs of feedstock imports going down. PS traders in the country are currently experiencing strong demand for the Styrene-based raw material on account of active functioning of the end-user industries, especially the appliance industry. As a matter of fact, demand for appliances strengthens substantially during the summer season, resulting in off-takes of the PS raw material getting bulky. 
 

A Delhi-based trader told Indianpetrochem," Demand for the PS material is on the rise, and it is expected to strengthen further." He further said," Stocks of the PS material are ample, and there is no indication of any upward traversal of the price." He quoted the prevailing price of the GPPS material at Rs 139 a kg in that market.

Describing the prevailing market situation, an official of a PS producer in the country said on conditions of anonymity that demand for the polymer was robust, across all sectors of end-users, but the appliance industry were consuming the most as demand for appliances peaks during the summer season. He also told that demand for Indian-origin PS in key export markets was  also strong.
 

A Delhi-based PS item manufacturer also revealed to the website that manufacturing activities in his factory were going on in full-swing, and he purchased the GPPS raw material in bulk quantities to sustain the vigorous manufacturing. He also revealed that the high operating rate in his factory was due to strong demand for his end-products.
 

Analyzing the key factors that normally impact the price movements, any increase in PS price in the country can be ruled out as price of the principal feedstock--Styrene--has been moderating in Asian markets. Moreover, the INR has been appreciating considerably after the new government coming into power. Also, stocks of the PS material are available in markets to cater to the demand. While, producers in the country are also operating their plants at high rates, that means stocks of the Styrene-based raw material will not decline in markets.