Asian styrene monomer slump on weaker demand from China

The Asia styrene monomer (SM) market has been falling during the previous week, when Chinese players were away for the long National Day holiday. The downtrend gains speed this week, plunging about $65/ton from last Friday, to reach $1148/ton FOB Korea term.

Market might remain under pressure in the coming days as buying interest in China fell visibly after players come back from the long break due to rising local inventories. Market sources informed that total SM inventories in China rise approximate 30,000 tons to nearly 90,000 tons earlier this week, causing a large drop in domestic prices.

Buying interest for import cargoes also affected on news of potential restrictions chemical vessel berthing and transport restrictions at all inland Jiangsu ports, including Zhangjiagang and Taicang, during the Communist Party Congress in October. The restriction bared docking and departure of vessels carrying bulk chemicals (Category X and Category Y). SM is included in Category Y.

There are also reports that additional of 20,000 tons import SM cargoes are arriving China this week, which would inflate the lossening supply condition further and might push suppliers to offer additional price cut.