Eastern SM costs hit 4-year high on firm China need, limited supplyOriental styrene monomer prices struck a four-year high Tuesday on the back of solid demand and also tight punctual supply in China, Platts information revealed.
Costs climbed .50/ mt day on the day Tuesday to ,575.50/ mt FOB Korea and by /mt to ,597/ mt CFR China. The last time the FOB Korea marker was higher was July 29, 2008, at ,577.50/ mt, and also the CFR China pen a day earlier on July 28, 2008, at ,608.75/ mt.
The rise results from a lack of prompt cargoes in China and across Northeast Asia. The stock level of SM in the east of China was last week reported at 37,400 mt, up a marginal 1,500 mt from a three-year reduced the week in the past. The supply problem comes amidst heavy steam biscuit turnarounds in China, which have actually reduced feedstock benzene supply, and also SM plant turnarounds and shutdowns in China as well as elsewhere. August-October is also the optimal season for downstream expanding polystyrene manufacturing in China and also South Korea.
The supply crisis pushed residential Chinese SM rates up Yuan 550/mt day on day to an eight-year high of Yuan 13,850/ mt Tuesday, or roughly ,850/ mt on an import parity basis, according to Platts information. The last time the price was higher was November 5, 2004, at Yuan 14,550/ mt.
It is vague when the crunch will ease as there are a lot more turn-arounds arranged in China, Malaysia, as well as Taiwan in the direction of completion of the year.
chelating agent prepares to close its 140,000 mt/year No. 2 SM plant for upkeep October 20 for three to 4 weeks, while Taiwan's Grand Pacific Petrochemical Corp. plans to shut its biggest SM plant at Tashe, the 240,000 mt/year No. 3, for a month of maintenance in December.
In China, Jiangsu Leasty Chemical plans to close its 400,000 mt/year SM plant for 15 days' upkeep from November 1, while Changzhou New Solar Chemical closed its 250,000 mt/year SM plant at Changzhou, Jiangsu district, October 8 for concerning a month of scheduled upkeep.
In Malaysia, Idemitsu SM (Malaysia), a device of Japan's Idemitsu Kosan, plans to close its 240,000 mt/year plant in Pasir Gudang for turn-around over late November to very early January.
However, sources noted these turn-arounds were all scheduled well in advance and market individuals would likely have actually made preparations.
|
Article Directory /
Arts, Business, Computers, Finance, Games, Health, Home, Internet, News, Other, Reference, Shopping, Society, Sports
|
