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In Asia, styrene monomer (SM) costs has been steadily firming up since late November on healthy downstream demand and surging benzene costs. However, this week, SM based on FOB Korea term fell approximate $90/ton compared to earlier last week, after hitting the highest levels seen in 17 months.

It is reported that demand from downstream market is fading as players are leaving for the long holidays. This would likely affect the PS market, which has been increasing in the past month due to strong styrene monomers costs. A market source informed, “We think this situation is temporary and styrene costs might firm up again in early 2017 due to a series shutdown in Japan, which might tighten supply.”

In fact, Japan’s Idemitsu Kosan is planning an overhaul at its 210,000 tons/year SM plant in China for a month during March. Meanwhile, NS Styrene Monomer is also mulling over taking both of its SM lines in Oita off-stream during first quarter 2017 for 20 days maintenance work. The plants have total capacity of 420,000 ton/year.

The question players are actively asking now is would these shutdowns support a rebound, especially with the recent regulation set by Chinese government in an effort to improve air quality around the capital city that affected 1200 companies. Some downstream PS converters are forced to lower operating rate which might limit demand too.