11 June 2012 10:26 [Source: ICIS news]
SINGAPORE (ICIS)--Spot styrene monomer (SM) prices in ?xml:namespace>
Prices increased from around $1,250/tonne CFR (cost and freight)
“The global markets and energy prices have been volatile recently and any new development out of the eurozone could destabilise the SM market again," said a trader in
Crude futures prices increased by more than $2/bbl on Monday morning on news that
Volatility in the SM market has caught a number of players in some bad trades.
SM prices came off from a high of around $1,515/tonne CFR China reached in the second half of April, shedding 17.5% in less than two months, according to ICIS.
“Some Chinese entities might have trouble issuing letter of credits for purchases made earlier at higher prices,” said another Korean trader.
Talk of potential failures by some counter parties have also curbed trades as participants sought clarity on the positions they have before entering the market again.
Meanwhile, lacklustre performance of downstream styrenic resins sector is also weighing in on the SM market.
SM is liquid chemical used to producer plastic resins like polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers like styrene-butadiene-rubber (SBR) and styrene-butadiene-latex (SBL).
“We have little appetite for spot SM purchases as demand for resins remains weak, said a Taiwanese resins maker.
The ongoing debt crisis in the eurozone and weak economic conditions in the
($1 = €0.80)
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