Chemical Industry news of Asian Styrene
– Improved buying activity, SM inventory declines
– Downstream Chemical Industry inch lower on week
Asian styrene monomer inched $11/mt higher on day to $1,088/mt CFR China and $1,048/mt FOB Korea Thursday on the back of the release of fresh weekly inventory data indicating a draw-down in stockpiles. In the East China domestic Chemical Industry, the June marker rose Yuan 95/mt on day to Yuan 8,405/mt ex-tank Thursday. The May/June spread in the East China domestic market was seen hovering between a flat to backwardated structure this week. This could be due to the higher supply expected after H2 May, said sources. Asian SM continues to trend higher despite the losses in western crude oil futures and the stable-to-softer feedstock prices. A Chinese source attributed the gains in SM to improved buying activity in the Chinese domestic Chemical Industry. According to sources, styrene inventory in East China declined 19,500 mt week on week to 241,000 mt Thursday. In the downstream Chemical Industry, however, discussions were thin amid bearish sentiment after comments by US President Donald Trump on tariffs against China on Thursday. Asian acrylonitrile-butadiene-styrene slid $25/mt from last Thursday to $1,545/mt CFR China and $1,565/mt CFR Southeast Asia, general purpose polystyrene fell $10/mt from last Thursday to $1,265/mt CFR China and $1,285/mt CFR Southeast Asia, while high impact polystyrene was stable to $5/mt lower from Thursday at $1,340/mt CFR China and $1,360/mt CFR Southeast Asia Thursday. The limited Chemical Industry activity in the downstream Chemical Industry was attributed to a wait-and-see approach, as clearer price direction was expected after the conclusion of the US-China trade talks later this week.
Asian SM was assessed $11/mt up on day at $1,088/mt CFR China and $1,048/mt FOB Korea Thursday. 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 Thursday. H1 and H2 June were assessed at the pegged level of $1,088/mt. In the East China domestic Chemical Industry, the June marker was assessed up Yuan 95/mt on day at Yuan 8,405/mt ex-tank, equating to $1,078.79/mt on an import parity basis. The FOB Korea marker was assessed at $1,048/mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,078/mt, based on the pegged $10/mt spread to CFR China.