Oversupply is overshadowing China’s high styrenics prices, sources told SSESSMENTS.COM. A Chinese styrenics producer disclosed that China is still maintaining the world’s highest styrene monomer (SM) prices at the moment, which attracts the low-priced import products into China market. At this rate, the offers for SM are expected to decline in the near future.
At the moment, one of the PS producers told SSESSMENTS.COM that as of May 14, SM inventory in coastal China recorded at 279,500 tons, increased by 1,900 tons from last week. Although the current domestic SM production rate is high, the supply will be further increased during this month. The supply from imported cargoes, such as from the Middle East, the US, Europe and South Korea is expected to arrive at China ports this month. Thus, the China market is predicted to be oversupply onwards. SSESSMENTS.COM also noted that both the inventory for PS and ABS were ample to support the first two weeks of May’s productions, which led to a slow digestion rate of SM inventory.
Demand-wise, the producer opined to SSESSMENTS.COM that as India is the second-largest styrene importer in Asia, a recent chemical gas leak at LG Polymers India Private Ltd (LGPI) has slowed down the demand for SM. The other export markets also showing no demand improvements. While on the downstream market, styrenics demand is on diverse stance. Demand from refrigerator manufacturers is declining since they are not eager to take raw materials due to slow finished product sales. In contrast, demand for XPS from insulation building materials industry improved steadily due to numerous infrastructure and housing projects.
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