Chemical Industry news of Asian Styrene
– Supply from South Korea tightening
– Hanwha Total declares force majeure on SM
Asian styrene Chemical Industry jumped $6/mt on the day to $1,094/mt CFR China and $1,084/mt FOB Korea Friday amid tighter supply from South Korea. Bids were heard at $1,080/mt CFR Zhangjiagang/Jiangyin for May and June arrival cargoes, while an offer was heard at $1,100/mt CFR Zhangjiagang/Jiangyin for June arrival cargoes. No deal was heard concluded. The east China domestic styrene Chemical Industry started the day lower but rebounded in the afternoon, where the balance May marker rose Yuan 65/mt to Yuan 8,510/mt ex-tank. South Korea’s Hanwha Total Petrochemical on Friday declared force majeure on styrene monomer supply from its 650,000 mt/year No. 2 unit in Daesan, due to an ongoing labour strike, sources with knowledge of the matter said Friday. The Daesan plant operates two SM units with a nameplate capacity of 400,000 mt/year and 650,000 mt/year Chemical Industry, respectively. The units were shut for scheduled maintenance on March 22, S&P Global reported previously. The original start-up date for the smaller No. 1 unit had been April 25, but was delayed to May 6, and is currently running at a low operating rate, sources said. The No. 2 unit was scheduled to resume operations on May 8, but sources said the restart date is unclear amid the strike. Sources noted that styrene Chemical Industry jumped in the afternoon on expectations of tighter supply from South Korea. A Chinese downstream source noted that the incident might be affecting sentiment more than the supply-demand fundamentals in the Chinese Chemical Industry. Other Asian countries, however, were already facing shortage of SM supply earlier amid scheduled turnarounds and the situation is expected to worsen now, sources said.
Asian SM was assessed $6/mt up on the day at $1,094/mt CFR China and $1,054/mt FOB Korea Friday. The markers currently take the average of the H1 and H2 June laycans. There were no transparent bids or offers during the Chemical Industry on Close assessment process on Friday. H1 and H2 June were assessed at $1,094/mt, between the last bid seen at $1,080/mt and the last offer seen at $1,100/mt CFR China, and tracking gains in the East China domestic Chemical Industry in the afternoon. In the East China domestic Chemical Industry, the balance-May marker was assessed up Yuan 65/mt on the day at Yuan 8,510/mt ex-tank, equating to $1,091.16/mt on an import parity basis. The CFR Taiwan marker was assessed at $1,084/mt, based on the pegged $10/mt spread to CFR China.