07 February 2012 07:00 [Source: ICIS news]
By Clive Ong
SINGAPORE (ICIS)--Styrene monomer (SM) prices in ?xml:namespace>
Spot prices in
On the other hand inventories in east
“The sharp increase in inventories has dampened sentiment of the market players,” a trader in
Domestic prices in east
“While there is some recovery in demand in the styrenic resins sector, the pick up has been more modest than expected,” said a resins trader in
Consequently, the slow improvement in the downstream sector is viewed by SM players to be insufficient to quickly digest the high monomer stocks in the short term.
“The high SM inventories and slow improvement in the plastics demand is exerting downward pressure on SM prices,” said a plastics manufacturer in
This has led to some end-users staying away from the market in anticipation of weaker prices in the near term.
While demand for resins is expected to pick up in February and March when end-users replenish stocks for the production season that usually starts in April, buying momentum has remained weak so far.
“Buying interest has not picked up strongly yet, although offers of plastic resins have increased,” said another trader in
The ongoing debt crisis in the eurozone and weak economic conditions in the
”Demand for finished goods from the eurozone and the US is likely to remain weak in the first half of the year so demand for resins and as a result SM will be capped,” said another resins producer in Taiwan.
The styrenics and SM markets are also unlikely to get another boost from the Chinese government which appears to have ceased loosening of monetary policy after reducing bank reserves once late last year.
“So far there is no further indications that credit in China would be loosened further, hence there is limited stimulus for demand in the domestic market,” said an SM producer in East China.
SM is a liquid chemical which is used to make plastics like polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers like styrene butadiene rubber (SBR) and styrene butadiene latex (SBL).
($1 = €0.76 / $1 = CNY6.31)
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