India’s styrene demand is expected to grow by a remarkable 15 percent in the financial year 2025-26, driven by a significant increase in the consumption of downstream products such as plastics, rubber, and other materials. Styrene serves as a monomer and is widely used as a raw material for the production of plastics, rubber, and various industrial goods.
According to the Chemicals and Petrochemicals Association of India (CPAI), the apex body for the chemicals and petrochemicals industry, India’s styrene monomer demand is projected to reach 1.40 million tonnes in the financial year 2025-26, up from an estimated 1.22 million tonnes in 2024-25. The CPAI also forecasts a 14 percent growth in styrene monomer demand for the financial year 2024-25, as stated in its latest report.
Import dependence
India’s entire demand for styrene is met through imports due to the absence of domestic production facilities. This reliance makes the demand vulnerable to international price fluctuations and availability issues. Benzene, the primary feedstock for styrene, plays a crucial role in determining the supply of styrene to India, as feedstock prices significantly influence market dynamics. As a result, sudden changes in international prices can severely impact domestic users.
Styrene is relatively inexpensive to transport, making it widely traded across regions. Asia currently accounts for more than half of global styrene demand and is expected to remain the primary driver of global growth. Key factors such as continued industrial development, population growth, and rising income levels are fuelling demand, particularly in emerging Asian markets, including India.
Negative growth in FY’24
During the first quarter of 2023, the Asia-Pacific styrene market experienced a continuous decline in prices due to a slow production rate. The initial phase of the quarter saw a downturn driven by falling upstream crude oil prices in the international market, prompting suppliers and end-users to stockpile the product. Additionally, weak demand from downstream sectors such as polystyrene, acrylonitrile butadiene styrene (ABS), and styrene-butadiene rubber (SBR) in February further impacted final prices.
In the second quarter of 2023, styrene prices in the Asia-Pacific region displayed a mixed trend as market sentiment fluctuated due to various factors influencing demand and supply dynamics. The quarter began with an uptick in styrene prices, followed by a gradual stabilization.
The third quarter of 2023 saw a notable increase in styrene prices in the Asia-Pacific region, with an overall rise of 22 percent. In July, the styrene market surged, driven by expectations of slower output recovery as China imposed a consumption tax on mixed xylene. This was coupled with increased consumption of styrene by downstream derivative industries.
In August, the global styrene market witnessed a significant price surge, primarily fueled by a continuous rise in crude oil prices. Higher crude oil costs directly increased production expenses for styrene, leading to higher market prices. Additional factors such as tightening oil supplies due to production cuts by the Organization of Petroleum Exporting Countries (OPEC), geopolitical tensions, supply chain disruptions, and growing global demand for crude oil further contributed to the uptrend.
These factors collectively pressured styrene manufacturers to adjust their pricing strategies, resulting in higher costs for end consumers. However, in September, the styrene market experienced price stabilization, a shift from the consistent growth observed earlier. This adjustment was attributed to market saturation as customer needs were largely met, alongside modest demand from derivative sectors, which contributed to price stability in the domestic market.
| Styrene demand-supply (‘000 tonnes) |
| Financial year (April-March) | Imports | Exports | Apparent demand | Demand growth (%) |
| 2025-26* | 1401 | 0 | 1401 | 14.9 |
| 2024-25* | 1219 | 0 | 1219 | 13.9 |
| 2023-24 | 1070 | 0 | 1070 | (-)2.1 |
| 2022-23 | 1093 | 0 | 1093 | 22.9 |
| 2021-22 | 889 | 0 | 889 | 20.5 |
Sources: Chemicals and Petrochemicals Association of India (CPAI), *Projections
Surplus suppliesThe Asia-Pacific Styrene market experienced a declining trend throughout the October–December 2023 quarter due to several factors. A surplus in product supply, weak demand, and limited market activity led to a drop in Styrene prices. Despite this, the market showed moments of bullishness, driven by strong demand for Styrene from downstream derivative industries, including polystyrene (PS), expandable polystyrene (EPS), and acrylonitrile butadiene styrene (ABS).
Additionally, the continued weakness in upstream crude oil prices and currency depreciation further impacted market fundamentals. However, by the week ending February 16, 2024, the APAC Styrene market showed signs of resilience. This was largely supported by higher ethylene prices and improved export prospects, despite ongoing sluggish demand across the region and poor profit margins for downstream products. An increase in Styrene prices was observed due to heightened spot purchases, though concerns lingered over China’s post-Lunar New Year demand recovery amid broader economic uncertainties.
Market sizeThe Indian styrenics market stood at 1.07 million tonnes in FY2023-24 and is expected to reach 1.22 million tonnes in FY2024-25, further rising to 1.40 million tonnes by FY2025-26. Styrene demand has been steadily increasing in the Indian plastics market over the past few years. Key end-use segments with high styrene consumption include automobiles, packaging, building and construction, consumer products, medical devices, and others. Favorable government policies and rapid expansion of projects like Smart Cities have boosted the consumption of styrene in plastic products.
A significant portion of styrene demand comes from automotive applications, where it is used as an alternative material to metals and steel to reduce vehicle weight, thereby enhancing fuel efficiency. India's buoyant retail vehicle sales, which jumped 13 percent to approximately 2 million units in February 2024, were supported by strong wedding season demand, improved chip availability, and automakers launching new models to cater to rising consumer demand. These factors have collectively driven the growth of styrenics demand in India.
Downstream demand to riseThe demand for products such as nylon tires, foam seating, and paints—made from benzene-derived intermediates like nylon, styrene, and phenol resins—has seen a notable surge in the market. Indian Oil Corporation Limited (IOCL), one of the largest companies involved in refining, transportation, and marketing of petroleum products, is planning a greenfield expansion at Panipat, Haryana. This project, with an estimated capacity of 387,000 tonnes, is expected to be operational by FY2026-27 and will help reduce India's dependence on imports.
The downstream ABS and polystyrene markets experienced strong demand in 2023, particularly from end-user industries such as home appliances and automotive. However, demand growth in FY2023-24 was lower compared to the previous year. Much of the future growth will depend on the pace of global economic recovery. Imports are projected to rise by approximately 13 percent over the next two fiscal years, reaching 1.40 million tonnes by FY2025-26.
In April 2022, the Indian government once again extended the deadline for implementing mandatory quality certification for styrene imports to April 24, 2024. While some international suppliers have already registered with the Bureau of Indian Standards (BIS) for certification, the completion process may take additional time.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
