China’s SM supply will rise after National Day holiday

Author: Tina Zhang

2019/09/30

SINGAPORE (ICIS)--China’s styrene monomer (SM) supply will increase on higher inventories and more domestic output in October despite several upcoming plant turnarounds.

(Source: Photo by Yu Fangping/Pacific Press Via Zuma Wire/Shutterstock)

The inventory levels of SM in east China were at 74,500 tonnes in the week ended 27 September, a decrease of 12.5% week on week because severe wind weather had led to a delay in arrivals totaling 40,000-50,000 tonnes.

There will be at least 21,000 tonnes due to arrive during the National Day holiday (1 -7 October).

Although ships with hazardous chemicals bound for east China ports were forbidden during 30 September to 3 October because of the Golden Week, the delayed cargoes will be unloaded thereafter.

Consumption at ports will be limited because the transportation of hazardous chemicals are restricted during the National Day period.

So, many players expect that SM inventory levels in east China may increase to above 120,000 tonnes in the week after the holidays.

Meanwhile, three SM producers plan to shut their plants after the Golden Week in east China.

Company Location Capacity (KT) Shutdown date Restart date
SP Chemicals Jiangsu 320 28-Aug 21-Sept
Sinopec Zhanjiang Dongxing Guangdong 60 Early July Around 15 Sept
Xinjiang Dushanzi Xinjiang 320 20-Jul Around 14 Sept
Changzhou New Solar Jiangsu 300 22-Aug Around 11 Sept
Sinopec Anqing PC Anhui 100 8-10 Oct End Nov
Jiangsu Leasty 1# Jiangsu 200 8-10 Oct Around 22 Oct
Jiangsu Leasty 2# Jiangsu 200 Around 23 Oct Around 6 Dec
Sinopec Guangzhou PC Guangdong 80 10 Oct 10 Nov
Abel Chemical Jiangsu 250 Mid-Oct Mid- Nov

While there are shutdowns in October, the production loss pales in comparison to that in September.

The production loss will be around 31,400 tonnes in October, compared with the loss of 41,300 tonnes in September.

Focus article by Tina Zhang