Weekly Styrene Monomer Report 16th October 2020
Weekly Price Trend: 12-10-2020 to 16-10-2020
- If we take a quick look at the above given weekly prices, it can be observed that domestic prices remained firm and increased significantly throughout this week.
- On Friday domestic values were assessed around Rs.62/Kg for bulk quantity at Kandla and for Mumbai ports of India by end of the week. Prices increased by Rs.7/Kg for this week.
Booking Price
INDIA & INTERNATIONAL
- The domestic prices of Styrene were assessed at the level of Rs.62/Kg for Kandla and for Mumbai ports. Domestic prices have increased by Rs.7/Kg for this week.
- FOB Korea values for SM were assessed at the level of USD 755/MT for this week. While CFR China prices were assessed at the level of USD 775/MT for this week. Prices has increased by USD 95/MT for this week.
- FOB Korea values for Benzene were assessed around USD420/MT for this week. CFR China prices were assessed at the level of USD 421/MT for this week.
- There has been improvement in demand of petrochemicals in India market past few weeks. The rise has been in particular due to beginning of festive season across the nation. Next week there will be starting of Navratri festival which will further boost the demand for chemicals.
- Indian government is working hard to provide more relaxations and financial help to the industry to overcome the adversities of pandemic. The steps include advance payment of a part of the wages of central government employees and allowing government employees to spend tax-exempt travel allowances on goods and services. All these measures are likely to create an additional demand of 730 billion rupees ($10bn).
- The Indian government will shore up investment by spending extra rupee (Rs) 250bn on roads, ports and defense projects, and offering Rs120bn rupees in interest-free 50-year loans to state governments for spending on infrastructure before 31 March 2021.
- The other major issue hurting Indian government is the over increasing number of Covid cases. Number of cases are expected to increase more and likely to exceed those in the US in the next few weeks given the rapid surge in infections in the past two months - 3m cases in September and 2m in August.
- The Reserve Bank of India kept its policy repurchase (repo) rate unchanged at 4.0% on 9 October, in line with market expectations and the second time that the central bank has kept its rates unchanged following the 40 basis points cut on 22 May this year.
- The emerging market giant is hurting from continued spikes in coronavirus infections - which constrain domestic economic activity - and a lacklustre external environment.
$1 = Rs. 73.34
Import Custom Ex. Rate USD/ INR: 74.25
Export Custom Ex. Rate USD/ INR: 72.55
