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After hitting the highest level in nearly five months on 26 February 2018, the Asian styrene monomer market has constantly wheeling downhill on the back of lacklustre buying interest from Chinese buyers. 

Compared to late February, styrene monomer (SM) based on FOB South Korea term plunged $174/ton to $1260/ton as of 16 March 2018. The recently implemented anti-dumping duties on import SM from South Korea, Taiwan and USA have yet to prove any impact on the demand in China, in contrast, local inventories surge more than 9% week on week to approximate 105,4000 tons, sources said.

Demand in China did not return as soon as it was initially expected as many downstream styrenic plants are still struggling to restore regular operation rate after the long Lunar New Year holiday. “This condition is expected to persist in the immediate term, which means market might witness further reduction in SM prices in days to come,” an industry source commented.

On the other hand, the trend might not sustain for too long as supply is tightening ahead of the heavy maintenance shutdown schedule. An estimated of nearly 70,000 tons lose in production due to these shutdowns from February to April, while the manufacturing season, which traditionally kick-starts in the second quarter of the year might boost demand.