China’s Shandong Yuhuang Chemical shuts SM unit, prices spike

19 June 2012 07:19  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shandong Yuhuang Chemical shut its 200,000 tonne/year styrene monomer (SM) plant on 17 June and reduced supply has resulted in an increase in SM prices in the region, market players said on Tuesday.

The SM unit at Heze in Shandong province has been shut for 30 days, a company source said.

As a result, some downstream producers and traders in Shandong have turned to buying SM cargoes from nearby Jiangsu market, which has increased the prices, the players added.

SM prices were assessed at yuan (CNY) 9,400-9,450/tonne ($1,478-1,486/tonne) DEL (delivered) Shangdong on 19 June, up by CNY 150/tonne from 15 June, according to Chemease, an ICIS service in China.

The unit produced 14,000 tonnes/month of SM last month and usually runs at 80-85% of capacity, the company source said.

The contractual and spot supply of SM from the plant will remain suspended during the shutdown period, the source added.

($1 = CNY6.36)

By: Echo Chen

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