Styrene Monomer (SM) prices march higher in Asia

Last week, Styrene monomer prices climbed in the Asian region.

An industry source in Asia, on condition of anonymity, informed a Polymerupdate team member, “Benzene feedstock values saw an increase, which in turn supported styrene monomer (SM) prices in the region.”

The source added, “The prices of styrene monomer (SM) have increased in China due to improving conditions in the local market. Rising demand and enhanced market sentiment in China have played a role in the price increase, indicating a more optimistic perspective for SM in the area. On July 24, the Chinese government indicated its plans to enact additional measures to oversee competition in the local market. The National Development and Reform Commission, together with the State Administration for Market Regulation, has recently started gathering public opinions on policies designed to control prices and improve market competition. The announcement of regulatory plans was welcomed, resulting in increases in financial markets as investors looked forward to a more organized and stable market setting.

On Friday, CFR South East Asia SM prices were assessed at the USD 955-965/mt levels, while CFR India SM prices were assessed at the USD 945-955/mt levels, both week on week higher by USD (+25/mt).

Prices in India have increased, closely mirroring the robustness of the Chinese market. Nonetheless, in spite of the price rise, demand in India stays subdued, indicating prudent purchasing in light of unpredictable market conditions. Increased shipping costs have also driven prices higher in the area. A trader characterized the present market conditions as somewhat frantic, pointing to excessive stocks, cash flow difficulties, and low demand as major contributors. They observed that the current demand for unsaturated polyester resin and emulsions is especially low. Along with the seasonal decline brought on by the monsoon season, numerous sellers must concede losses merely to sell their goods.

In the local market, domestic styrene prices held steady at Rs 81.50-82/kg from the previous week, backed by weak demand and sufficient stocks. An Indian trader, pointed to the weakening market conditions, mentioning that end-users have begun to seek prices as low as Rs 81/kg, indicating the persistent weakness in demand and overall tough market sentiment. Delays in shipping at Kandla port have continued, with the wait time increasing to 8-9 days, compared to the earlier 3-4 days. This rise in turnaround time is probably leading to logistical issues and might affect the prompt transportation of cargo in the region.

CFR Taiwan SM prices were assessed at the USD 950-960/mt levels, a gain of USD (+20/mt) from the previous week.

FOB Korea SM prices were assessed at the USD 920-930/mt levels while CFR Japan SM prices were assessed at the USD 930-940/mt levels, both gaining by USD (+30/mt) from the previous week.

Meanwhile in South Korea, buyers continued to be wary because of weak seasonal demand and lingering worries about possible US tariffs. This cautious stance led to limited market activity even with positive pricing indicators

CFR China SM prices were assessed at the USD 930-940/mt levels, a week on week increase of USD (+30/mt).

Benzene feedstock prices on Friday were assessed at the USD 745-755/mt FOB Korea levels, higher by USD (+25/mt) from the previous week.