Singapore — The Asian styrene margin hit a year-to-date high at $238/mt Monday as feedstock ethylene costs slipped to a 14-month low, S&P Global Platts data showed.
Styrene monomer was assessed Monday at $1,418/mt CFR China, unchanged from last Friday, while ethylene was assessed at $1,180/mt CFR Northeast Asia, the lowest since August 15, 2017, Platts data showed.
SM prices were seen likely to remain rangebound in the near term unless unplanned supply issues emerged, market sources said.
Margins for downstream acrylonitrile butadiene styrene have been negative since end July, Platts data showed.
While Northeast Asian SM end-users have signaled lower buying interest, Chinese demand for prompt cargoes was expected to pick up temporarily after the week-long National Day holiday on replenishing requirements, as stocks were seen low at 32,000 mt on September 28.
Chinese demand is also expected to emerge in the Asian spot ethylene market due to restocking requirements after the week-long holiday, but remain subdued in Northeast Asia in the leadup to winter, trade sources said.
On the supply side, sentiment is expected to remain bearish due to a glut of ethylene cargo arrivals in Asia in October and November.
Cargoes from the US and the Middle East were heard to be arriving in China and Southeast Asia in October, while major regional producers were heard offering cargoes into Northeast Asia, pressuring spot prices lower.
–Brian Ng, [email protected]
–Regina Sher, [email protected]
–Edited by Wendy Wells, [email protected]
Source: S&P Global Platts
