China: in the Current Year Styrene Went Down in Value ThriceDec 26th, 2017
The price of styrene monomer on the domestic market of China continues to decline. For the current year, Chinese styrene market has been experiencing the third recession. The price decline is caused by the launch of new production facilities and the availability of large stocks of material in the region.
On 19 December the maximum spot price of styrene monomer in Eastern China was 10 CNY 250 per tonne ($1298) while only last week a ton of styrene was sold for 10 CNY 950 ($1 371).
According to the market source, within the current week, the stocks of styrene monomer, which are accumulated in the ports of Eastern China, have increased by 18% which is nearly 12.5 million tons. Compared to this week, from 11-17 December the stocks of styrene increased by 76%, which is slightly larger than the current one.
This is due to new supplies of styrene to China from other countries. Now the ports of China have 47.5 thousand tons of material while last week the volume of imported styrene was 51.9 thousand tons. Consumption of styrene in the two weeks amounted to 57.6 thousand tons. Today there are about 90 thousand tons of styrene on the domestic market.
Styrene, which is the main raw component for the production of polystyrene, comes to China from abroad, but also is produced by national companies. Next week the company Qingdao Soda Ash will begin testing a new styrene plant. The Eastern Chinese trader says that the launch of a new capacity will further increase domestic supply. Accordingly, we should expect a new price fall for styrene monomer. Therefore, many consumers do not rush to buy this product, soon expecting to purchase it at a much lower price.