Asian SM Rallies on Benzene Gains; Indian Copolymer Market Eyes Seasonal Recovery

Key Highlights

1. Styrene Monomer prices rose $30/MT across Asia despite crude softness.
2. Indian SM bulk price at Kandla stood at ₹82/kg.
3. April demand was weak, but FMCG and infrastructure may drive recovery from June.
4. Prices likely to rise by 1.5% in June–July amid regional supply tightening.

Styrene Monomer Prices Firm Across Asia

• The price of imported Styrene Monomer in bulk packaging at the Kandla port was recorded at Rs. 82/kg.
• Styrene Monomer prices in Asia strengthened despite weaker crude oil values. Thursday, FOB Korea SM prices were assessed at $890–900/MT, marking an increase of +$30/MT from Wednesday. 
• Similarly, CFR China SM prices rose by +$30/MT to $900–910/MT. Upstream benzene values also firmed up, assessed at $710–720/MT FOB Korea, gaining +$15/MT day-on-day. 
• Meanwhile, Indian Styrene Copolymer prices showed signs of recovery with a projected 1% month-on-month increase in May 2025, after a 1.5% drop in April.

Weak April Demand for Styrene Copolymers in India

• The Indian Styrene Copolymer market showed moderate activity in April 2025, with downstream sectors like packaging and electronics displaying subdued demand. 
• Manufacturers operated on pre-existing inventories, while electronics firms remained cautious amid weak consumer sentiment. 
• This resulted in reduced offtakes, prompting importers and traders to offer discounts. On the supply side, India remained import-reliant, with steady shipments from South Korea and Taiwan.
• Domestic production focused on specialty grades and stayed limited. Despite lower prices, surplus inventory levels led to restrained buying. 
• However, demand is expected to improve from June onward, supported by the monsoon-driven uptick in FMCG and retail packaging, infrastructure projects, and electronics consumption.

Signs of Recovery in Packaging and Electronics Sectors

• Asian SM prices increased sharply due to bullish sentiment and firmer upstream benzene values. The rebound in SM pricing comes despite a dip in global crude benchmarks. 
• For Styrene Copolymer, April’s bearish tone is transitioning, with signs of seasonal recovery in May driven by market stabilization and logistics improvements. Freight rates remained stable, easing cost pressures. 
• New joint ventures and infrastructure expansion are expected to drive downstream demand, with packaging and electronics poised for growth. Traders are eyeing stock replenishment as downstream orders show early signs of revival.

Market Expectation: June–July Price Outlook Positive

Styrene Copolymer prices are projected to rise by 1.5% in June and continue upward in July 2025, driven by seasonal demand, stable freight, and tightening regional supply, particularly in Southeast Asia.