Asian styrene monomer fell $13/mt from last Tuesday to $1,074/mt CFR China and $1,024/mt FOB Korea Tuesday on expectations that buying interest from downstream markets would not pick up strongly this week. Discussion remained muted as participants began returning to the market after week-long Lunar New Year holidays. In the east China domestic market, the prompt marker was assessed down Yuan 140/mt from last Tuesday at Yuan 8,430/mt ex-tank Tuesday, equating to $1,056/mt on an import parity basis. Operating rates of producers and buyers in downstream markets were expected to return to normal gradually. “Styrene price movements would depend on the rate at which operations return to pre-holiday rates. Further, new orders are expected to be limited this week,” a market participant in China said. High inventory levels of styrene in east China could also keep prices on a downtrend. The styrene inventory in east China stood at 306,500 mt Tuesday, up 37,000 mt from January 30, market sources said. Feedstock benzene rose $4/mt from last Tuesday to $609/mt CFR China Tuesday, while ethylene rose $15/mt over the same period to $1,100/mt CFR Northeast Asia. SM production margins remain healthy at $106.80/mt, although $20.70/mt lower than a month earlier, according to S&P Global CSG data.
Asian SM was assessed down $13/mt from last Tuesday at $1,074/mt CFR China and $1,024/mt FOB Korea Tuesday. The two markers currently take the average of the H1 and H2 March laycans. There were no transparent bids or offers during the CSG Market on Close assessment process. H1 and H2 March were each assessed at $1,074/mt CFR China. The East China domestic prompt marker was assessed at Yuan 8,430/mt ex-tank, down Yuan 140/mt from last Tuesday, and equating to $1,056/mt on an import parity basis. The FOB Korea marker was assessed at $1,024/mt, based on the pegged $50/mt spread to CFR China, and the CFR Taiwan marker at $1,062/mt, based on the pegged $12/mt spread to CFR China.