SPOILER ALERT!
East China styrene monomer inventories rise 72% on week, sharpest surge in 2015
Styrene monomer supplies in the essential eastern China market rose 71.85% week on week last Friday to 55,000 mt, the sharpest rise in 2015, according to sector sources as well as Platts historic data.
This was because of the arrival of SM freights from the United States-- which were packed over June-July-- as well as postponed freights because of tropical storms in the region, market sources claimed.
This sharp spike in east China supplies Friday pressured the CFR China market, which shed $47/mt day on day and also $186/mt week on week to $937.50/ mt, according to Platts information.
The regular monthly standard of east China's SM inventory has, nonetheless, been hovering at a historical reduced given that February.
The supplies have been holding below last year's levels and additionally listed below the four-year average. For July, east China's SM stock averaged 35,140 mt, down 62.97% from the four-year standard of 94,912.50 mt.
The stocks slid to nearly a 74-month low of 29,000 mt on June 26. It was last listed below that level on April 17, 2009, at 25,000 mt.
East China's SM supplies had actually nosedived after striking a year-to-date high of 133,000 mt on March 6 on limited supply.
This was because of a heavier-than-usual turnaround period in primary distributor South Korea over March-May, deepsea supply from the United States being drawn away to Europe where prices were greater, tight credit lowering the acquiring power people dollar-denominated SM cargoes for Chinese buyers and a rebound in demand from downstream expandable polystyrene makers.
Looking ahead, market sources expect to see a mild healing in supply levels-- a renovation from the first-half of the year-- amidst existing uninspired demand from downstream markets and also China's slower economic growth.
China's initial Caixin production PMI score was up to 47.1 in August-- the lowest given that April 2009-- and also was listed below expert assumptions of a 47.7 reading.
biocides oil and gas listed below 50 indicates a contraction in the Chinese production sector, while over 50 suggests development.
This was because of the arrival of SM freights from the United States-- which were packed over June-July-- as well as postponed freights because of tropical storms in the region, market sources claimed.
This sharp spike in east China supplies Friday pressured the CFR China market, which shed $47/mt day on day and also $186/mt week on week to $937.50/ mt, according to Platts information.
The regular monthly standard of east China's SM inventory has, nonetheless, been hovering at a historical reduced given that February.
The supplies have been holding below last year's levels and additionally listed below the four-year average. For July, east China's SM stock averaged 35,140 mt, down 62.97% from the four-year standard of 94,912.50 mt.
The stocks slid to nearly a 74-month low of 29,000 mt on June 26. It was last listed below that level on April 17, 2009, at 25,000 mt.
East China's SM supplies had actually nosedived after striking a year-to-date high of 133,000 mt on March 6 on limited supply.
This was because of a heavier-than-usual turnaround period in primary distributor South Korea over March-May, deepsea supply from the United States being drawn away to Europe where prices were greater, tight credit lowering the acquiring power people dollar-denominated SM cargoes for Chinese buyers and a rebound in demand from downstream expandable polystyrene makers.
Looking ahead, market sources expect to see a mild healing in supply levels-- a renovation from the first-half of the year-- amidst existing uninspired demand from downstream markets and also China's slower economic growth.
China's initial Caixin production PMI score was up to 47.1 in August-- the lowest given that April 2009-- and also was listed below expert assumptions of a 47.7 reading.
biocides oil and gas listed below 50 indicates a contraction in the Chinese production sector, while over 50 suggests development.
