11 June 2012 00:00 [Source: ICB]
Offers for styrene monomer (SM) in Asia declined by about $30/tonne (€23/tonne) on May 30, tracking declines in crude energy futures, with US crude continuing to decline after shedding almost $3/bbl overnight, market sources said.
Quotes for July parcels were around $1,330/tonne CFR (cost & freight) China, while bids were at $1,305/tonne, they said. "Sentiment is weak given the escalating crisis in Europe. Most buyers are keeping away from the market or bidding low prices," said a Singapore-based trader.
An August parcel was heard concluded at $1,310/tonne CFR China while a July cargo changed hands at around $1,290/tonne FOB (free onboard) Korea.
Concerns about the eurozone crisis escalated with the ratings downgrade of Spain in late May, prompting speculation that troubles in the region were far from over, casting a pall on global growth prospects.
Because of the bearish sentiment, some traders were shorting the market in order to profit from the anticipated decline in prices.
"The market is expected to remain volatile in the near term, as sentiment changes daily, based on the development in Europe, as well as on crude oil price movement," said an end-user in Taiwan.
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