24 December 2010 02:21 [Source: ICIS news]
By Clive Ong
In contrast, domestic SM capacity in the country would increase by less than a quarter of the incremental styrenic resin production next year at 400,000 tonnes/year, they said.
In Japan, however, SM production would be shaved as Mitsubishi Chemical was due to permanently shut production at its 371,000 tonne/year plant in Kashima in April.
“SM supply would likely be tight next year as downstream capacity has a large increase,” said an eastern Chinese producer.
On 23 December, the average SM prices stood at $1,367.50/tonne (€1,039.30/tonne) CFR (cost and freight) China, up 3.6% from start of the year, recouping strongly from losses towards the middle of 2010, according to ICIS data.
The price correction in SM spot prices in late October, and again in late November, appeared to be a consolidation in the bull-run which began late July, market sources said.
The key Chinese market continued to support SM prices this month, despite the weakening of demand for downstream products such as polystyrene and acrylonitrile-butadiene-styrene (ABS) from late October, when the peak manufacturing season in
“Buying interest from
From a broader global economic point of view, some market players were anticipating the policies adopted by major economies like the
However, if these western countries succeeded in pulling their economies out of doldrums, demand for oil and petrochemicals would increase and naturally push commodity prices higher.
($1 = €0.76)
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