Styrene Copolymer Market in India Witnesses Mixed Trends in October 2024

The Indian market for Styrene Copolymer experienced different trends in October 2024, influenced by demand-supply dynamics and global market developments. According to the studies by ChemAnalyst, Prices for Styrene Copolymer reduced by approximately 1.4% during the month, because of declined demand in downstream sectors like packaging and automobiles. This trend was more strengthened by a further drop in base material styrene prices in the month. However, a recovery in feedstock prices during the middle of the month provided some stability and limited the extent of the price decline for Styrene Copolymer.

Demand patterns of Styrene Copolymer showed varied performance across industries. The packaging sector continued to support the market, driven by the constant demand from food and beverage manufacturers. Meanwhile, the automobile sector faced challenges with lowered production activity, adding pressure on the Styrene Copolymer market. In contrast, export demand provided some support, as international sales of Indian goods increased, offsetting domestic challenges.

On the supply side, conditions remained stable, with manufacturers maintaining output levels to meet both local and export demands. Improved logistics and shorter delivery lead times supported in managing the inventories of Styrene Copolymer efficiently. Despite these improvements, margins for producers remained under pressure due to constant cost inflation for feedstock materials like ethylene, labour, and transportation.

India’s manufacturing sector recovered significantly in October, supported by an increase in new orders and export sales. Marketing initiatives and new product launches supported the production activities across various industries. Growth in the demand for base materials, including Styrene Copolymer, partially compensated the cost pressures during the second half of the month. Despite this, inflationary trends in transportation and labour costs remained as the primary challenges for manufacturers in the Styrene Copolymer value chain.

Looking forward, the Styrene Copolymer market till the end of this year is likely to remain challenging. Demand from the packaging sector is expected to continue providing stability to the market, while difficulties in the automobiles and consumer goods segments may limit significant price recovery.

However, the market estimation team at ChemAnalyst anticipates the Styrene Copolymer market to grow from early 2025 onwards, with the team predicting the prices to increase moderately by 1.4% in January, followed by a significant increase in the month of February, as the demand from the downstream sectors usually revives post the holiday season, and that the usage of Styrene Copolymer is likely to increase as the new fiscal quarter begins. Moreover, the team also anticipates the economic sentiments for production activities to be positive and the prices for base material styrene to increase, all of which together could help the market in reviving and changing its trajectory.

In summary, October 2024 marked a period of modest decline for the Indian Styrene Copolymer market. While growth in export demand and constant procurements by the packaging sector offered some stability, the market faced challenges due to reduced demand from the automobile sector and increased transportation and labour costs. As market participants prepare for the coming months, they are likely to focus on optimizing supply chains and managing cost pressures to ensure operational sustainability and business growth.