Styrene monomer prices increased due to poor supply

CFR China styrene monomer prices went up $7/mt on daily to day while noticed $36/mt week on week to $1,345/mt Friday( as on 27/01/2017),strong demand noticed in regions for March cargoes. Feedstock benzene FOB Korea prices noticed higher at $60/mt from last Friday to $978/mt. Meanwhile, feedstock ethylene CFR Northeast Asia increased $60/mt week on week to $1,170/mt. Prompt domestic East China styrene monomer price hiked by Yuan 100/mt day on day to Yuan 10,710/mt, or $1,294/mt on import parity basis. February local styrene monomer prices also hiked by Yuan 200/mt day on day to Yuan 10,760/mt, or $1,300/mt on import parity basis. East China inventory level increased 42% week on week but is still considered tight at 64,100 mt, as estimated Wednesday this week. Downstream, acrylonitrile-butadiene-styrene increased $20/mt week on week to be evaluated at $1,850/mt CFR China Wednesday on the back of higher feedstock costs. Butadiene prices remained at a 57-month high in second week running, as spot February cargoes were sold off towards the end of the week. A Taiwanese producer sold two spot cargoes of butadiene for February loading at $3,000/mt FOB. In India, styrene monomer prices have also increased week on week, as downsteam EPS and PS demand went higher these days, a market player said. “Market players and traders are generally expecting prices to go up. Speculative buying is strong at the moment due to regular off takes from buyers,”source said.
In plant news, Thai SM producer IRPC expected to shut its 260,000 mt/year SM plant located in Rayong February 1 for maintenance, a company source said on Friday. The plant is expected to restart on 15^th March, the source said. Styrene monomer prices on a CFR Southeast Asia basis are expected to be supported in the first quarter, now days  supply is tight on the due to  turnarounds in the region that are scheduled to begin next month.
Bids and Offer: The Styrene monomer price marker in Asia rose $7/mt day on day and $36/mt week on week to be assessed at $1,345/mt CFR China. During Market Close assessment process, there was a March bid at $1,352/mt CFR China Asia origin, which normalizes to $1,348/mt CFR China open origin. Hence, H1 and H2 March laycans were calculated at $1,351/mt CFR China Friday. H2 February was  heard at $1,339/mt CFR China Friday.


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Ehylene prices went higher due to limited supply

Asian traded ethylene went up between $30-$60/mt as on 27/01/2017. The CFR Northeast Asia marker hiked by $60/mt from Thursday to hit a five month high Friday, at the same period of time CFR Southeast Asia traded ethylene price increased by $30/mt went upto 3-months high. Due to olefins plant operations in China Asian ethylene market will be tightening in Feb-March. Some sources informed operation rates at methanol-to-olefins plants in China were falling due to high methanol price which made narrowed MTO margins. On Friday, the CFR China methanol price increased $6/mt day on day to be assessed at $342/mt. Ethylene demand in China noticed higher due to positive margins for ethylene derivatives production. Styrene monomer margin was assessing at plus $40-$100/mt,where monoethylene glycol margin was calculated at around plus $100/mt this week. Amid this, traders actively searching spot FOB cargoes this week due to coming demand from end users. An ethylene supplier in Northeast Asia said he received lots of inquiries for spot FOB cargoes from traders this week but not enough material to cater the demand. FOB ethylene supply was noticed short amid high run rates at ethylene derivative plants. The FOB Korea ethylene marker noticed up $35/mt week on week at 3-months high of $1,100/mt Friday. The price increased little at CFR SEA as spot supply was healthy in the region in line with a downstream plant turnarounds.
Price assessments: The CFR Northeast Asia ethylene noticed increased $60/mt on daily basis at $1,170/mt Friday. A deal was heard done at $1,155/mt CFR NEA, while the latest negotiation was heard in the high-$1,100s/mt CFR NEA. The CFR Southeast Asia ethylene marker was assessed at $1,035/mt, went up $30/mt day on day. A buying idea evaluated between $1,010-1,030/mt CFR SEA, against a selling assessments at $1,050/mt CFR SEA. The FOB Korea ethylene price increased $35/mt week on week to be assessed at $1,100/mt Friday. No spot cargoes were available from South Korea and regions at this offer for February, while two deals just rumoured  done at $1,100/mt FOB NEA for H2 February and H1 March loading.

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