Price of Styrene Monomer slipped in China with fluctuations in crude oil prices

In this week, the prices of Styrene Monomer (SM) slipped to $1340/ton Spot Ex-Tianjin and $1230/ton CFR Shanghai with week-on-week declination of 0.44% and 1.6% respectively. Feedstock Benzene prices were also ended with weaker note in China and demand remained sluggish. The prices of Benzene in China were observed to be $1075/ton CFR Shanghai.

Domestic styrene monomer (SM) costs dropped down this week in the face of milder futures as crude values were fluctuating downwards. Inventories at ports in east China expanded further but the growth was at a slower pace. In the meantime, somewhere around 60,000 tons of cargoes will be sent out in February-March, which is also expected to haul down the stock level later. It needs monitoring whether some independent makers will either carry out functional reductions or turnarounds out of plan in view of widening losses in production. FOB Korea Benzene was observed to be steady with $1039/ton. Weaker buying sentiments for feedstock from Styrene maker toned down the trade activity for spot Benzene cargo. Higher freight charges affect the styrene market which continued to face constraints affecting the styrene monomer domestic market.

According to ChemAnalyst, the prices of Styrene Monomer (SM) will increase in the upcoming weeks with lack of product availability and securing market sentiments. Feedstock Benzene market is also expected to grow with healthy demand and insufficient supply. Downstream Polystyrene market will remain healthy with increase in purchases from the consumer’s end. The existing inventories are expected to be sold out with increase in demand for the new stocks. Crippling availability of Styrene Monomer (SM) will also surge the prices in the regional market. However, logistics constraints and increase in transportation charges will remain the issue which will give boost to the prices of the product.