05 July 2010 05:55 [Source: ICIS news]
By Clive Ong
SINGAPORE (ICIS news)--Asia styrene monomer (SM) prices into the key Chinese market may slip below the $1,000/tonne (€800/tonne) levels in the near-term on strong supply amid weak market sentiment, traders said on Monday.
Spot prices declined to $1,000/tonne CFR (cost and freight) China last week from $1,050/tonne CFR ?xml:namespace>
Concerns about the overall strength of the global economic recovery hounded the SM market after the release of weak jobs and manufacturing data in the
“New economic data from
Spot buying indications for SM were cited at $980/tonne CFR China, with stronger availability of the material also weighing on prices.
The start-up of Ningbo Zhenhai Lyondell Chemical’s 620,000 tonnes/year unit in eastern China and the restart of Leasty Chemicals’ units in late June boosted supply, prompting buyers to adopt a wait-and-see mode.
Among these were the 250,000 tonne/year No 1 plant of Formosa Chemical and Fibre Corp, the 160,000 tonne/year unit of LG Daesan, the 160,000 tonne/year No 2 unit of Taiwan Styrene Monomer Corp and the 100,000 tonne/year No1 unit of Styrindo Mono Indonesia.“Supply in July seems to be increasing, hence, end-users are bidding below $1,000 per tonne,” said a trader in
A number of trades were heard at around $1,000-1,005/tonne CFR China among traders.
To some players, however, it may be a case that the SM market had been oversold in recent weeks. Some of them picked up parcels, anticipating a price rebound in the near-term, market sources said.
“Prices have declined continuously since early May and an upward bounce could be in the offing,” said a Chinese trader who made a recent purchase.
SM is a raw material used in manufacturing plastic resins like polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS); and also synthetic rubbers like styrene butadiene rubber (SBR) and styrene butadiene latex (SBL).
($1 = €0.80)
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