Styrene Monomer (SM) prices in India are completely reliant on price fluctuations of the Asian benchmark prices. In turn, the benchmark prices overseas are impacted significantly by Benzene prices, its feedstock. International Benzene prices have been volatile since last month due to the crude oil price fluctuations caused by the political insurgency in Iraq. While the prices of Benzene have stabilized on this account, the international prices of Styrene are yet to move back to original trading range.
As a result of the geopolitical tension in the Middle East, crude oil peaked to $115.06 per barrel in June, 2014. However, as the supply situation eased, the oil prices have been on downtrend ever since, and currently the prices have reached at support levels of $ 105.54 per barrel.
In line with this price correction, benchmark Benzene prices have moved down from highs of $1,420 per metric tonne FOB Korea in June, 2014, to current trading range of $1,334-1,337 per metric tonne FOB Korea. Consequentially, the landing price of Benzene have also stablized to levels of $1,375 per metric tonne CFR India after touching highs of $1,430 per metric tonne CFR India, according to sources.
However, the booking price of Styrene Monomer in India hasn't moved back to original levels of 1,600 per metric tonne CFR China.. A prominent importer reported, "The benchmark prices in China are at $ 1,635-1,640 per metric tonne CFR China, they are expected to move back to stable range of $1,600 per metric tonne CFR China, within the next two weeks".
At present, the bulk price of Styrene Monomer is around Rs. 104-105 per kg and there is good demand from the paint and resin industry, while there is moderate demand from the polystyrene industry.
(This article was published on the website on July 17, 2014)
As a result of the geopolitical tension in the Middle East, crude oil peaked to $115.06 per barrel in June, 2014. However, as the supply situation eased, the oil prices have been on downtrend ever since, and currently the prices have reached at support levels of $ 105.54 per barrel.
In line with this price correction, benchmark Benzene prices have moved down from highs of $1,420 per metric tonne FOB Korea in June, 2014, to current trading range of $1,334-1,337 per metric tonne FOB Korea. Consequentially, the landing price of Benzene have also stablized to levels of $1,375 per metric tonne CFR India after touching highs of $1,430 per metric tonne CFR India, according to sources.
However, the booking price of Styrene Monomer in India hasn't moved back to original levels of 1,600 per metric tonne CFR China.. A prominent importer reported, "The benchmark prices in China are at $ 1,635-1,640 per metric tonne CFR China, they are expected to move back to stable range of $1,600 per metric tonne CFR China, within the next two weeks".
At present, the bulk price of Styrene Monomer is around Rs. 104-105 per kg and there is good demand from the paint and resin industry, while there is moderate demand from the polystyrene industry.
(This article was published on the website on July 17, 2014)
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