China SM inventories jump as a result of holidays

14 September 2016 07:27 Source:ICIS News

SINGAPORE (ICIS)--Styrene monomer (SM) stocks along the eastern China shore tanks jumped this week amid mid-Autumn festivities, ICIS data showed.

Inventories rose by 23,400 tonnes to 101,700 tonnes with arrivals of 49,000 tonnes registered. This was the first rise in stocks in over 4 weeks, or since the middle of August.

A number of players attributed the rise in stocks to holidays across Asia this week.

In early week, markets in a number of countries in southeast Asia were closed for the Eid Ul Adha holidays.

Other major markets like China, Taiwan and South Korea will start to shut in the middle of this week for the mid-Autumn festivities.

“Trade is slow this week due to regional holidays and buyers delayed commitments to next week,” said a trader in China.

Some 60,000 tonnes of deep-sea parcels from the US are expected to arrive in Asia in September while a similar quantity is expected next month, according to traders' estimates.

Spot prices of SM into the key Chinese market eased below $1,050/tonne CFR (cost & freight) China this week amid tepid buying interest.

SM is a liquid chemical used to make resins like polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) as well as synthetic rubbers like styrene-butadiene-rubber (SBR) and styrene-butadiene-latex (SBL).

By Clive Ong