Elevated Feedstock Benzene Market Boosts the Prices of Styrene in India

The hike in prices of feedstock Benzene has uplifted the prices of Styrene. Benzene being the primary feedstock for Styrene, has a direct influence on the supply of Styrene in India, since feedstock prices determine the prevalent market dynamics.

Styrene is used for producing various products such as Polystyrene, Styrene Acrylonitrile Resin, etc. Polystyrene is applied as polymer for textile, packaging, building, construction. The price of Polystyrene is surging due to the geopolitical tension between Russia and Ukraine. Styrene is the derivative of Crude oil. As a result of war, the prices of Crude and Natural Gas were observed to be accelerating.

The sales and revenue of several downstream Polystyrene producers were squeezed mainly because of packaging enterprises that pressurized them to fulfil the requirement from the consumer’s end. The Benzene prices have also been surging due to the rising prices of Crude oil. The lower product inventories and strong product downstream demands of Benzene is affecting the price trend for Styrene. Due to lower supply and high demands in the downstream sector, prices of Styrene have taken a high pace in March. India imports Styrene from South Korea and the US. The trade sector of South Korea swings powered by stronger than expected growth in exports.

According to ChemAnalyst, “The Soaring upstream crude and Naphtha prices had impacted the market with the scarcity of product and potential hikes in monthly Benzene prices. The demand for Styrene in Asia (India, China) also surged where the demand from downstream Polystyrene was increased. India is also expected to be the fastest-growing market during the forecast period, with increasing markets of Polystyrene for end-users like electronics and home appliances, packaging, and construction due to increasing demands in the downstream sector.”