Flat on day amid rangebound discussions
SM inventory drops 3,100 mt at 229,600 mt
Asian styrene monomer was $19/mt lower on the week at $1,071/mt CFR China and $1,031/mt FOB Korea Friday on the bearish sentiment despite stronger upstream crude (Imported data). Day on day, styrene was assessed flat amid rangebound discussions. Prices were initially lower earlier in the day before recovering to end the day stable. In the CFR China Imported Data, a bid was heard at $1,065/mt for June-arrival cargoes but it did not attract any selling interest. In the east China domestic market, the prompt marker was assessed at Yuan 8,200/mt ex-tank Friday, Yuan 10/mt higher day on day. At 4:30 pm Singapore time (0830 GMT), ICE June Brent futures were up $2.29/b (3.316%) on the week at $71.35/b Friday. Imported Data has been rather “directionless” Friday amid weak buying interests, a market participant said. According to sources, styrene inventory in east China fell 3,100 mt on the week at 229,600 mt, where consumption of 23,100 mt outstripped arrivals of 20,000 mt. Despite the recent continuing drawdown in styrene inventory, it hasn’t been a supporting factor to prices and sentiments given that the current level remains much higher than historical Imported data, Market sources said. Styrene inventory in east China is 154,500 mt higher as compared to the same period last year. Market participants further noted that the earlier news of China’s Changzhou New Solar Chemical shutting its 300,000 mt/year styrene monomer plant in Changzhou, Jiangsu for 20-25 days of unplanned maintenance from April 15 might have some short-term influence on styrene when the plant starts maintenance coming Friday. The CFR India and Southeast Asia markers were assessed down $19/mt on the week at $1,064/mt and $1,061/mt Friday, respectively.
Asian SM was assessed stable on the day at $1,071/mt CFR China and $1,031/mt FOB Korea Imported data Friday. The markers currently take the average of the H1 May and H2 May laycans. There were no transparent bids or offers during the Platts market on Close assessment process on Friday. H1 and H2 Jun were assessed at $1,071/mt CFR China Imported data, above the best bid heard at $1,065/mt with no offer heard. Maintaining the pegged flat May/Jun spread, H1 and H2 May were assessed at $1,071/ mt, also tracking firmer sentiments in the east China domestic market in the afternoon. In the east China domestic Chemical Industry, the prompt marker was assessed up Yuan 10/mt on the day at Yuan 8,200/mt ex-tank, equating to $1,058.37/mt on an import parity basis. The FOB Korea marker was assessed at $1,031/mt, based on the pegged $40/ mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,059/mt, based on the pegged $12/mt spread to CFR China Imported data.