Asian styrene monomer fell to an 18-month low of $1,031/mt CFR China Wednesday, with fundamentals continuing to weaken from a combination of low demand and rising inventories.
The marker was last assessed lower at $1,025/mt on May 12, 2017, S&P Global Platts data showed.
Weak demand from the downstream markets, rising inventories in East China, as well as a softening energy complex have all lent downward pressure to the SM market.
Stocks in East China had swelled 29%, or 15,800 mt, week on week to 70,300 mt as of Wednesday, according to market sources.
Adding to this, escalating trade tensions between the US and China had caused huge uncertainties in the market -- capping SM prices.
"The downward trend and volatility in styrene look like it will persist longer than previously expected. Recovery is limited even if there is a rebound in prices," an Asian producer said Wednesday.
Downstream polystyrene and acrylonitrile-butadiene-styrene producers said buying interest is minimal as end-users are reluctant to keep inventories amid the gloomy outlook and volatility in feedstock styrene.
When prices started sliding in October, market sources noted it was a correction from the $1,400s/mt level they have been waiting for. But with the fall in SM prices extended over a prolonged period, this dampened overall confidence level among end-users.
ABS was assessed at $1,480/mt CFR China and $1,530/mt CFR Southeast Asia Wednesday. GPPS assessed at $1,280/mt CFR China and $1,350/mt CFR Southeast Asia, while high-impact polystyrene was assessed at $1,330/mt CFR China and $1,360/mt CFR Southeast Asia Wednesday.
