Styrene Monomer Weekly Report 22 Feb 2019

Weekly Price Trend: 18-02-2019 to 22-02-2019

• If we take a quick look at the above given weekly prices, it can be observed that for the current week prices of Styrene Monomer remained highly vulnerable.
• On Friday domestic values were assessed around Rs.85/Kg for bulk quantity at Kandla and Rs.87/kg for Mumbai ports of India. 

Booking Price

INDIA& INTERNATIONAL 

• The domestic prices of Styrene were assessed at the level of Rs.85/Kg for Kandla and Rs 87/kg Mumbai ports. Domestic values reduced by Rs.11/Kg in the span of one week.’
• Domestic market is flooded with the high level of inventory levels with limited demand. The importers are finding it really difficult to get rid if surplus of chemical.
• Thus in turn has broken the margins for the importers and now they are in hurry to clear out the stock.
• FOB Korea values for Styrene were assessed around USD 1025/M with no change in international market. On other side CFR China prices also decreased by USD 1065/MT, remained unchanged for this week. South East Asia prices of SM were evaluated at USD 1055/MT. Here slight improvement in the values was observed.
• Benzene FOB Korea prices remained firm for this week. FOB Korea values were assessed around USD 615/MT. On other side CFR China prices were assessed around USD 630/MT for this week.
• The recent terror attack on Indian military will have an adverse impact on Indian trade relation with neighbouring nation. Moreover such heinous attacks affect the economy of the country as well.
• US crude has hit a new high in production this week. Prices on back of this production has hit to bottom despite of OPEC trying to withhold the production and tighten global markets.
• International Brent crude futures were at $66.87 per barrel at 0326 GMT, down 20 cents, or 0.3 percent, from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel, down 12 cents, or 0.2 percent, from their last settlement.
• U.S. crude output has soared by almost 2.5 million bpd since the start of 2018, and by a whopping 5 million bpd since 2013. America is the only country to ever reach 12 million bpd of production.
• OPEC and some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million bpd to prevent a large supply overhang from growing. Another recent price driver has been U.S. sanctions against oil exporters Iran and Venezuela.  

PLANT NEWS

Styrene Monomer unit shut down by GPPC

• Taiwan’s Grand Pacific Petrochemical Corporation will shut down its SM unit for maintenance turnaround. The unit will go off-stream next week for around 3-4 weeks for scheduled maintenance.
• Unit is based at Kaohsiung and has the production capacity of 2,50,000 mt/year. The company has also other unit at same location with capacity of 130,000 tonne/year.

$1 = Rs. 71.14

Import Custom Ex. Rate USD/ INR: 72.65

Export Custom Ex. Rate USD/ INR: 70.95