FocusLess styrene in Asia amid turnarounds

19 February 2008 04:35  [Source: ICIS news]

By Clive Ong

SINGAPORE (ICIS news)--Asian styrene monomer (SM) market availability could be balanced in the second quarter as a spate of turnarounds offset current ample supplies, traders said on Tuesday.

Several facilities in Japan, including Idemitsu Kosan, Asahi Kasei, Nippon Steel and Nippon SM, are scheduled for maintenance from February to May.

Traders believe that the shutdowns, which could reduce material availability by over 100,000 tonnes, will correct the Asian market’s demand-supply balance rather than make it tight.

"Currently, there are ample stocks in Japan and the shutdowns will only help absorb a portion of it," a trader in southeast Asia said.   

Inventories in China were also high with shore tanks along the eastern region having around 120,000 tonnes of material, up from around 80,000 tonnes at the beginning of the year.

Other turnarounds in the region during this period include Taiwan Styrene Monomer Corp (TSMC) and Styrindo Mono Indonesia (SMI).

‘This could result in further upside for spot prices in March and April," said a trader in Shanghai, adding that this would depend on Chinese end-user demand.

The spot market remained in a contango with April values around $10-15/tonne (€7-10)higher than March on an FOB (free on board) Korea basis and $20-30/tonne higher on a CFR (cost and freight) China basis.

($1 = €0.68)

By: Clive Ong
+65 6780 4359

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