Styrene Monomer Market Update: Prices Climb as Benzene and Ethylene Costs Rebound
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Importers have raised Styrene Monomer prices by ₹1/kg, bringing them to ₹97.50++ per kg on an ex-Kandla basis and ₹99.50++ per kg on an ex-Mumbai basis, with 60-day credit terms. Traders are offering higher prices, quoted at ₹100++ per kg ex-Kandla and ₹103++ per kg ex-Mumbai, also on 60-day credit terms. This price increase is attributed to limited inventories at the ports and a rebound in feedstock Benzene and Ethylene prices.
Price
- Importers have raised Styrene Monomer prices by ₹1/kg, bringing them to ₹97.50++ per kg on an ex-Kandla basis and ₹99.50++ per kg on an ex-Mumbai basis, with 60-day credit terms.
- Traders are offering higher prices, quoted at ₹100++ per kg ex-Kandla and ₹103++ per kg ex-Mumbai, also on 60-day credit terms.
- This price increase is attributed to limited inventories at the ports and a rebound in feedstock Benzene and Ethylene prices.
- The futures contracts for the Asian benchmark market, CFR China, for Styrene Monomer are as follows: SM CFR China 2nd Half Aug 2024: $1126/MT SM CFR China 1st Half Sep 2024: $1118/MT Futures contracts have shown a notable increase.
Demand and Supply
- India's monthly demand for Styrene Monomer, ranging from 65,000 to 70,000 tons, is entirely met through imports.
- Styrene Monomer is predominantly consumed by industries involved in the production of Polystyrene, Expanded Polystyrene (EPS), Paints, Coatings, Styrene Butadiene Rubber, and ABS Resin.
- Demand from these sectors was robust during July 2024 and is expected to remain steady through August and September 2024.
- The rebound in feedstock prices, particularly Benzene and Ethylene, is driving up conversion rates for Styrene Monomer.
- However, the continued arrival of shipments might exert downward pressure on Styrene prices in the domestic market if liquidation slows down.
- Significant increases in freight costs, replacement costs, and feedstock prices are expected to keep Styrene prices stable in the short term.
- In the current petrochemical cracking dynamics, converting Benzene to Styrene is not financially viable due to narrow profit margins. With the current spread at $120, compared to the required $225 per metric ton.
- Styrene Monomer needs an increase of $100-105 per metric ton to reach the break-even point. Industry experts suggest that this situation may lead to a potential price hike.
News
- Internationally, WTI Crude Oil prices have surged by 1.01% to $75.58 per barrel.
- FOB Singapore Naphtha prices are at $658 per metric ton.
- Feedstock Benzene prices FOB Korea stand at $1000 per metric ton.
- Ethylene prices have risen by $5 to $840 per metric ton.
- FOB Korea reported Styrene Monomer prices at $1120 per metric ton.
Expert's Opinion
- Domestic Styrene Monomer prices are expected to remain volatile due to higher feedstock prices and increased replacement costs. Limited inventories at ports are likely to exert upward pressure on prices. Buyers should consider inventory opportunities in anticipation of a potential price surge.
Daily Market Report
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