03 November 2010 06:55 [Source: ICIS news]
Correction: In the ICIS news story headlined “Iran SM adds to massive deep-sea cargoes bound for ?xml:namespace>
By Keny Jin
SINGAPORE (ICIS)--China will receive around 30,000 tonnes of styrene monomer (SM) from Iran in December, adding to the strong flows of deep-sea cargoes that continue to augment the Asian country’s inventory and upset SM prices, industry sources said on Wednesday.
Some traders had expressed concerns that inventory levels in east
Actual inventory was pegged at around 75,000-80,000 tonnes this week, much higher than the usual level of 60,000-70,000 tonne in off-season, market sources said.
The SM price in east
Buying activities were limited, according to traders, as most of them were waiting on the sidelines given the surplus supply that was weighing on prices.
The plant was shut on 20 August due to lack of feedstock benzene as a result of sanctions on Iran due to its nuclear arms programme.
Pars Petrochemical's Chinese clients
Pars Petrochemical is a branch of
Meanwhile, some 100,000 tonnes of material were heading towards northeast Asia, including
The strong supply of imported SM, however, was not being matched by demand, given seasonal weakness in production of major downstream expandable polystyrene (EPS) in China, they said.
EPS producers were expected to further cut operating rates at the plant by to just 50% in the last two months of the year. Currently, the plants were running at between 60-65% of capacity, industry sources said.
EPS accounts for about a third of
($1 = CNY6.68)
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