02 August 2012 07:43 [Source: ICIS news]
By Clive Ong
Spot prices reached $1,430/tonne (€1,173/tonne) CFR (cost & freight)
Inventories along the shore tanks in east
Previously, inventories were at an all-time high of around 151,000 tonnes in early February, but drew down to below 100,000 tonnes in late April. The sell-off in global markets in May amid the intensifying eurozone debt crisis caused demand to weaken, the data showed.
“The decline in spot inventories along
The rebound of the market in the second half of June and July also prompted a number of short sellers to cover their positions.
“There are some short covering activities for August and September cargoes, contributing to the rising prices in these two weeks,” said a South Korean trader.
The lack of deep-sea parcels from the
“The volatility of the markets this year have also prompted traders to adopt a cautious stance, especially for deep-sea cargoes as shipping time is usually several weeks,” said a trader in Singapore.
Meanwhile, downstream styrenic resins demand showed little improvement in July, despite the start of the third-quarter manufacturing season in
Nonetheless, SM sellers expect demand to pick up gradually in August and September as factories in
SM is a liquid chemical used to make resins such as polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers such as styrene butadiene rubber (SBR) and styrene butadiene (SB) latex.
($1 = €0.82)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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