22 March 2012 03:47 [Source: ICIS news]
By Clive Ong
The window for SM arbitrage trade has been closed for months, given a very slim price differential
“The US-Asia arbitrage is currently impossible, as prices in the
China SM prices are hovering at around $1,470/tonne (€1,117/tonne) CFR (cost & freight) this week, while
Spot freight rates are currently hovering in the $80/tonne levels for easy chemical ex-US to
“Technically the arbitrage window is closed but producers in the
Among those with scheduled maintenance at SM facilities include Nippon Steel, Asahi Kasei, Idemitsu in
Asian SM buyers are also cautious about securing deep-sea cargoes, which are more open to price risks given longer delivery time, market sources said.
Weak economic conditions in the
“The announcement by
SM is a liquid chemical used to make plastic resins like polystyrene and acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers like styrene-butadiene-rubber (SBR) and styrene-butadiene-latex (SBL).
($1 = €0.76)
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