<p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">Supreme Petrochem, one of India's leading polystyrene producers and exporters, has delivered a stark assessment of how shipping disruptions are translating into lost export volumes for Indian chemical manufacturers. Executive Director Rakesh Nayyar said the company's exports fell by approximately 65–68% in the first half of FY2026-27 compared with the same period last year, and he expects full-year exports to decline by 70–75% unless shipping routes reopen and freight costs ease substantially </span><span class="">. The warning underscores the uneven impact of the West Asia crisis on India's manufacturing exporters: while domestic demand has held up, the logistics costs and uncertainties associated with seaborne trade have effectively shut many exporters out of their overseas markets.</span><span class="_5f9bba8" data-citation-group="1" style="margin-left: 2px; margin-right: 2px;"><a href="https://www.cnbctv18.com/market/earnings/supreme-petrochem-q2-results-sees-up-to-5-volume-growth-in-fy27-exports-may-fall-75-20020475.htm/amp" target="_blank" rel="noreferrer" aria-label="1" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a></span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The freight numbers cited by Nayyar illustrate the scale of the cost shock. Last month, freight rates for exports to Jebel Ali touched $4,000 per container, compared with around $250–300 under normal conditions </span><span class="">. This roughly thirteen-fold increase in container costs makes export sales commercially unviable for many product categories, particularly commodity chemicals where margins are thin and buyers are price-sensitive. Beyond the absolute cost, Nayyar pointed to timing mismatches between sourcing raw materials and shipping finished products, alongside reduced availability of shipping space and extended transit times, as compounding factors </span><span class="">.</span><span class="_5f9bba8" data-citation-group="2" style="margin-left: 2px; margin-right: 2px;"><a href="https://www.cnbctv18.com/market/earnings/supreme-petrochem-q2-results-sees-up-to-5-volume-growth-in-fy27-exports-may-fall-75-20020475.htm/amp" target="_blank" rel="noreferrer" aria-label="1" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a></span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The raw material side of the equation has been equally turbulent. Styrene monomer, Supreme Petrochem's key input, peaked at around $1,650 per tonne after the West Asia conflict disrupted supply through the Strait of Hormuz, before moderating to around $1,500–1,600 per tonne including freight </span><span class="">. Nayyar noted that styrene prices had fallen to a low of $950 towards the end of June during the ceasefire period, but rose sharply again after July as geopolitical tensions resumed </span><span class="">. This volatility in input costs, combined with elevated freight for both inbound raw materials and outbound finished goods, has compressed the spread between raw material costs and selling prices.</span><span class="_5f9bba8" data-citation-group="4" style="margin-left: 2px; margin-right: 2px;"><a href="https://www.cnbctv18.com/market/earnings/supreme-petrochem-q2-results-sees-up-to-5-volume-growth-in-fy27-exports-may-fall-75-20020475.htm/amp" target="_blank" rel="noreferrer" aria-label="1" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a><a href="https://nsearchives.nseindia.com/corporate/FINIAN_30042026193523_Transcript30042026.pdf#1#3#1" target="_blank" rel="noreferrer" aria-label="12" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a></span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">Despite the export collapse, Supreme Petrochem's domestic business has provided a buffer. Nayyar said domestic demand remains "healthy and strong," with the non-OEM segment recovering in the September quarter after weakness earlier in the year </span><span class="">. The appliance sector—air-conditioners, refrigerators and washing machines—is performing well, with manufacturers adding capacity aimed at making India an export hub, and the company expects its new capacities to increasingly cater to this domestic market </span><span class="">. Value-added products account for around 40% of production, a share the company has maintained because a major portion of supplies goes to domestic customers </span><span class="">.</span><span class="_5f9bba8" data-citation-group="7" style="margin-left: 2px; margin-right: 2px;"><a href="https://www.cnbctv18.com/market/earnings/supreme-petrochem-q2-results-sees-up-to-5-volume-growth-in-fy27-exports-may-fall-75-20020475.htm/amp" target="_blank" rel="noreferrer" aria-label="1" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a></span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The financial results reflect this dual reality. For Q2 FY27, Supreme Petrochem reported revenue of ₹1,956 crore, up 77.8% year-on-year, and net profit of ₹95 crore, nearly double the ₹48 crore recorded in the year-ago quarter </span><span class="">. However, on a sequential basis, profit after tax fell nearly 60% from ₹236 crore in Q1 FY27, when exceptional spreads between styrene and polystyrene had boosted margins </span><span class="">. The company declared an interim dividend of ₹2.50 per share </span><span class="">. Nayyar acknowledged that the Q1 performance was not comparable, as styrene prices moved up globally, availability tightened, and the margin differential narrowed because freight rates for liquid cargo rose substantially compared with containerised cargo </span><span class="">.</span><span class="_5f9bba8" data-citation-group="10" style="margin-left: 2px; margin-right: 2px;"><a href="https://www.cnbctv18.com/market/earnings/supreme-petrochem-q2-results-sees-up-to-5-volume-growth-in-fy27-exports-may-fall-75-20020475.htm/amp" target="_blank" rel="noreferrer" aria-label="1" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a><a href="https://www.cnbctv18.com/market/stocks/supreme-petrochem-share-price-q2-results-net-profit-nearly-doubles-to-rs-95-crore-declares-rs-2-50-interim-dividend-20018349.htm" target="_blank" rel="noreferrer" aria-label="11" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a><a href="https://trendlyne.com/posts/5910042/q2fy27-quarterly-result-announced-for-supreme-petrochem-ltd?tlsource=clientapp" target="_blank" rel="noreferrer" aria-label="15" style="color: rgb(57, 100, 254); transition: box-shadow 0.2s cubic-bezier(0.4, 0, 0.2, 1); border-color: rgba(255, 255, 255, 0); border-width: 2px 3px; margin-left: -3px; margin-right: -3px; text-decoration: none; position: relative;"></a></span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">For Indian logistics and trade observers, Supreme Petrochem's situation illustrates a broader pattern among chemical and petrochemical exporters: domestic demand and product spreads can sustain profitability for a time, but the loss of export markets represents a structural hit that capacity additions cannot offset in the near term. The company is proceeding with its ₹325-crore polystyrene expansion at Amdoshi, Maharashtra, scheduled for completion by December 2028, financed through internal accruals, and remains debt-free </span><span class="">. But the export recovery timeline remains contingent on shipping normalisation. Nayyar said the company hopes conditions will ease over the next six to eight months, and that it will continue serving export markets and maintaining customer relationships in the interim </span><span class="">. For now, the export business is effectively on hold—a casualty of freight economics that no amount of domestic demand can fully compensate.</span></p>
Supreme Petrochem Warns of 70–75% Export Collapse as Freight Costs and Shipping Disruptions Bite
Mumbai-based polystyrene maker Supreme Petrochem expects its exports to fall 70–75% in FY2026-27, with first-half exports already down 65–68%, as freight rates on key routes surge and shipping capacity remains constrained. Executive Director Rakesh Nayyar said freight to Jebel Ali touched $4,000 per container last month, compared with $250–300 under normal conditions. The company now expects overall volume growth of no more than 5% this year, relying on strong domestic demand from the appliance sector while its export business remains largely stalled until shipping conditions normalise. Q2 FY27 revenue rose 77.8% year-on-year to ₹1,956 crore, though profit after tax fell sharply quarter-on-quarter.
