Asian SM hits 11-year low amid crude falls

Asian styrene monomer (SM) prices fell today to an 11-year low after a corresponding slump in crude futures.

The Argus cfr China SM price assessment was at $732.50/t on a cfr China basis today, down by $93/t or 11pc compared with 6 March, the lowest since February 2009.

Domestic prices in China also fell during today's trading session. Prompt supplies dropped to 5,750-5,780 yuan/t, down by Yn750/t compared with 6 March.

Market sentiment at the start of March had just started to rise as SM prices inched up. An explosion on 4 March at South Korean producer Lotte Chemical's 1.1mn t/yr cracker and the shutdown of its 580,000 t/yr SM unit had also help to further underpin SM sentiment.

Weaker demand, coupled with concerns about the coronavirus outbreak and high inventories in China, had seen SM prices on 28 February slip to $767.50/t for the first time in 11 years, according to Argus data.

Upstream benzene prices also fell today to the lowest level in the past 14 months on the back of the sliding crude futures.

By Toong Shien Lee

source: Argus Media