Asia styrene prices rise despite oil slump

06 November 2008 07:13  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian styrene monomer (SM) continued to rise despite falling crude values as inventories in its key Chinese market were low, traders said on Thursday.

Crude values fell to around $65/bbl from $67-69/bbl on Thursday but domestic Chinese SM values rose to yuan (CNY) 6,000-6,200/tonne ($877-906) ex-tank from CNY5,800/tonne ex-tank the day before.

"Tight supply will sustain prices in the near run even though crude oil values have slipped," said a trader in eastern China.

Shore tank stocks in eastern China were estimated around 30,000 tonnes this week, down from 55,000 tonnes a month ago.

"Stocks among end-users and distributors are low, as the recent price collapse saw buyers keeping to the sidelines," said a trader in eastern China.

Buyers, however, have emerged from the sidelines to snap up parcels late last week, betting that prices might have fallen to the bottom level. This pushed domestic prices above CNY6,000/tonne ex-tank from CNY4,400/tonne and import prices to $600/tonne CFR (cost and freight) China from the low of $500s/tonne CFR China.

Supplies in eastern China remained tight with two producers shutting down last week, one due to financial troubles and the other because of poor economics, said market participants.

($1=CNY6.83)

Please visit the complete ICIS plants and projects database
To discuss issues facing the chemical industry go to ICIS connect

By: Clive Ong
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 3 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly