SINGAPORE (ICIS)--Both Asia’s and China's styrene price movements have been affected by cost pressure stemming from firmer upstream benzene and ethylene performance, together with a seasonal lull in China's downstream domestic demand and squeezed styrenics production spreads.
In this podcast, Jasmine Khoo speaks with editors Trixie Yap and Tina Zhang on the recent development of these conflicting factors and what it means for demand-supply fundamentals in the short run.
- Negative margins from high costs have resulted in short-term run rate cuts from Chinese makers
- Rising regional NE Asia supply after turnaround season could be neutralised if arbitrage flow from the US decreases for H2 Sep-Oct arrival
- Downstream demand in domestic China market will remain on a need-to basis as the seasonal lull extends to August
- Chinese import buying will ultimately be dependent on back-to-back margins
Here’s the link for the registration form to the annual styrene methodology seminar.