Styrene, VAM prices to go down in India on low demand, uncertain future market conditions – 14 May 2014

Excessive stocks and moderate demand conditions have resulted in prices of Styrene and VAM slipping in the major chemical markets in India. According to the latest market research carried out by Indianpetrochem, the latest Ex-Kandla price of Styrene was at Rs 101-101.50 a kg, while, that for VAM was at Rs 94-95 per kg.  

The Indian market is completely dependent on imports as there is no pan- India manufacturer for both of the products.The market research also revealed that prices of the chemicals also had been falling due to traders being eager to dispose off their Styrene and VAM stocks to avoid losses arising out of the chemicals becoming un-usable on account of the seasonal effect, in which, the chemicals get polymerized under the impact of the summer season. Interestingly, several traders were also trying to liquidate their available stocks, even at lower prices, in the apprehension of the upcoming new government probably change business rules, that might affect their profit margins. 
 

The latest known import booking prices for VAM was at $1,290 per metric tonne FOB South Korea, and that for Styrene was at $1,615 per metric tonne FOB South Korea.
 

Traders in the major chemical markets in the country expected prices of the chemicals to go down further.