NWE Styrene – Spot prices fall tracking fall in Asia

Chemical Industry

– May traded at $1,085/mt

– Stricter safety checks in China

European styrene spot prices fell Friday tracking the fall in Asian prices. S&P Global  assessed styrene for loading 5-30 days forward at $1,086/mt FOB ARA Friday, down $14 on the day. A 1,000 mt trade was reported for May at $1,085/mt in the morning trading session. Following the early trade buyers and sellers were far apart with bids at $1,070/mt and offers at $1,090/mt for prompt and forward months. In Asia, styrene extended its losses, sliding $16 on the day to $1,071/mt CFR China and $1,031/mt FOB Korea Friday on bearish sentiment after the latest inventory data showed an increase in stockpiles. The market continues to keep a close eye on the impact of the stricter safety checks in China. A market source said prices were likely to hover around current levels unless there was a significant increase in buying which might reduce inventory. Downstream, following extensive buying earlier this year, demand has slowed in April following the rise in styrene monomer. The rise in the styrene contract price by Eur97.50 to Eur1,152.50/mt caused buyers to buy in line with their needs, market sources said.

RATIONALE:

S&P Global  assessed styrene for loading 5-30 days forward at $1,086/mt FOB ARA Friday, down $14 on the day. April was assessed at $1,087/mt, down $14 on the day, based on a stable $2 backwardation to May and within the bid offer range of $1,070-$1,090/mt. May was assessed at $1,085/mt, down $14 on the day, within the bid offer range of $1,070-$1,090/mt and in line with an earlier trade at $1,085/mt.

 

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