The Strait of Hormuz disruption has significantly altered styrene trade flows for India across three areas: supply disruption, trade rerouting, and shifts in market power. Before the conflict, India depended heavily on the Middle East for styrene imports due to short shipping distances, readily available feedstocks, and low freight costs.

The US/Iran war caused Middle East styrene exports to fall sharply. Major producers SABIC and Equate declared force majeure, while feedstock shortages reduced global production. Supply shortages and transport issues pushed prices higher, creating a supply shock across the styrenics sector. With less Gulf supply, India turned to Northeast Asia, particularly China and Taiwan, though shipping takes longer and costs more.

Chinese producers, facing weaker domestic demand from construction and consumer goods sectors, expanded market share in India. Buyers shifted strategy, reducing inventory from one to two months to just a few weeks to manage risk. Middle East suppliers retain advantages including geographic proximity and feedstock integration, and may reclaim share once conditions stabilize. The crisis may push India to diversify sources and develop domestic styrene capacity.