09 October 2012 06:46 [Source: ICIS news]
By Clive Ong
On Monday, spot prices increased by an average of $15/tonne (€12/tonne) from 5 October to $1,525-1,575/tonne CFR (cost and freight)
Chinese SM players have returned to the market after a week-long absence because of a public holiday from 1-5 October.
“The tight supply of spot cargoes, especially for October lots, has sustained SM prices,” said a Korean trader.
Market players, however, expect a downward pressure on prices in the near term as trade for October parcels have largely been concluded and focus has shifted to November lots, which are priced lower.
A fixture for November shipment emerged this week at $1,525/tonne CFR China this week, market sources said.
“The much lower price for November cargoes reflects the weakness of the market going forward,” said an end-user in
Recent shortages of benzene in
In addition, the redirection of Asian parcels to
But with demand expected to slow down in the fourth quarter, the price uptrend could fizzle out despite the ongoing shortage.
“Prices could stabilise or even retreat as the market enters a low demand season,” said an end-user in
SM is a liquid chemical used to make plastic resins like polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers like styrene-butadiene-rubber (SBR) and styrene-butadiene-latex (SBL)
($1 = €0.77)
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