The Asian styrene monomer market is backwardated with ongoing plant maintenance making prompt supply tighter, sources said this week.
CFR China SM for H2 September was assessed at $1,051/mt Thursday, $14/mt higher compared with H1 November.
Although Shanghai Secco is expected to restart its plant at the end of September, other major units in the region are expected to shut their units for maintenance.
Hanwha Total, Idemitsu, Taiyo and FCFC are all expected to carry out maintenance at their plants this month.
Lower imports added to the prompt supply tightness. "There are not many deepsea cargo arrivals," a source said Friday.
Another source added that some cargoes might arrive from the US and the Middle East in the next few weeks, but the prompt market remained tight.
The backwardation is, however, seen as typical for the time of the year.
China will shut for a week at the beginning of October, when downstream plants typically cut operation rates amid lower demand.
Beyond October, sources expressed concern over demand in the fourth quarter.
This coincides with the return of units that will shut for maintenance in September, keeping the Asian market well-supplied.
Fundamentals in Asia in Q4 will dictate global prices, sources said.
A third source, who is based in Europe, said that in the absence of any maintenance scheduled for plants there, European prices will be supported by Asian markets.
