NWE Styrene – Prompt, forward months at parity in quiet trading

Chemical Industry

– Taiwan FCFC No. 3 aromatics plant shut by fire

– Chinese styrene inventory falls to 335,000 mt

European styrene spot prices rose from Tuesday as prompt and forward prices were heard at parity. S&P Global Tuesday assessed styrene for loading 5-30 days forward at $1,076/mt FOB ARA Tuesday, up $1. Participants described the chemical industrial market as quiet. Sources said they were closely monitoring the Asian market for news from the Taiwanese Formosa Chemicals and Fibre Corp. plant. An explosion and a subsequent fire broke out at FCFC’s No. 3 aromatics plant in Mailiao on Sunday. The plant has been shut since the explosion. The No. 3 plant has the capacity to produce 900,000 mt a year of paraxylene, 640,000 mt/year of benzene and 240,000 mt/year of orthoxylene. According to chemical industrial market sources, there is minimal impact on styrene. However a European producer expected there to be an impact on the styrene chemical industry as a result of a loss in benzene production. “Benzene will impact on styrene and there will always be speculation,” the producer said. Styrene inventory in east China fell 15,000 mt on the week to 355,000 mt Tuesday. Consumption of 25,000 mt exceeded arrivals of 10,000 mt, according to chemical industrial market sources.

RATIONALE:

S&P Global Tuesday assessed styrene for loading 5-30 days forward at $1,076/mt FOB ARA Tuesday, up $1 on the day. April was assessed at $1,076/mt, stable on the day, within the bid-offer range of $1,075-$1,085/mt. May was assessed at $1,076/mt, up $5 on the day, $1 above the outstanding bid at $1,075/mt and below the outstanding offer at $1,085/mt. This put April and May at parity.

Chemical Industry
Chemical Industry

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