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The Asian styrene market made an impressive jump this week despite the absence of many key players due to Lunar New Year holidays. Compared to last Friday, styrene based on FOB Korea term has surged approximate $120/ton to reach $1515/ton on Thursday, the highest level observed since September 2014, CommoPlast data showed.

Tight availability is accounted for such abrupt movement with not only limited Japanese cargoes but also on going production issues in the USA, market players said. As reported earlier, Japan’s Idemitsu Kosan is planning an overhaul at its 210,000 tons/year SM plant in Chiba 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.

Besides, the upstream benzene costs are also hovering around multi-years high levels, which play an essential role in pushing styrene monomer prices higher. On the other hand, players in the styrenic sector, including those in PS and ABS market are taking very cautious stance, questioning the sustainability of the current trend given the absence of Chinese players. A market source commented, “We prefer to monitor further development in the coming week before taking position, as in case Chinese buyers are unable to accept the hike, prices might likely to retreat.”