The main sources of styrene monomer made in China decreased by 13.8% compared with the data of the past 7 days. ICIS data for eastern China.
For comparison, let's take tonnage figures - in mid-March, the second week was 179 tons, which is 24.5 tons. more than in the third week of March.
Styrene situation in China
If you look at the volume shipped in Chinese ports, the tonnage was 29 thousand tons to 33 thousand tons that week.
Moreover, if we compare the needs of additives by factories and firms for the manufacture of the final product, it was at around 53 thousand tons.
Note that styrene is a direct component used for the manufacture of polystyrene (PS).
Based on ScanPlast data, the total use of polystyrene and styrene plastics in the Russian Federation increased by 12 percent in the first month of 2021 (compared to 2020). And it became 45 tons. more.
The styrene situation in Indonesia
The company with Indonesian roots Styrindo Mono Indonesia, which is a subsidiary of the Indonesian petrochemical group of manufacturers ChandraAsri Petrochemical, also monopolizes the production of styrene in the country. This is the only production of this product.
The company announced a planned reconstruction of its facilities, which will begin at the end of March. The production of styrene will be stopped at the plant No. 2 (which is located in the city of Merak).
It is predicted that the work will be carried out over a period of 1 month. up to 1.5 months Considering that the enterprise produces 240 thousand tons. styrene per year, then 45 days of idle time will reduce the output by 30 thousand tons. And the total annual volume will decrease to 210 thousand tons.
Besides SMI, one of the largest monomer (styrene) manufacturers in Asia is Shell Chemicals, based in Singapore. And also IdemitsuSM Malaysia, SCG-DowChemicals in Thailand. It is these styrene suppliers that will be filling the gap created by the shutdown in Indonesia. In this case, the price will increase slightly.
To buy SDEB brand styrene in bulk from a manufacturer in Russia - link. Make a request for a commercial proposal and a technician will promptly advise you on stocks in the warehouse, delivery juices.
Update from 04/20/2021
Industrial stocks of styrene for export sales decreased by 5.7% in comparison with the previous 7 days. The trend is as follows - the decline in volumes from the Chinese supplier fell for the fifth week in a row.
The total reserves on 04/14/2021 amounted to 101.5 thousand tons, which is six thousand less than a week earlier.
At the same time, 43,000 tons of styrene were delivered to the port for shipment. Traces the shortage of the product - consumption by buyers is about 49,000 tons, including exports.
The raw material is used as the main additive in the manufacture of polystyrene / PS.
The situation in Russia - according to analytical data, consumption decreased by 11% compared to the same period in 2020.
US factory fire and market environment
06/06/2021 a fire was recorded at a factory in Texas. According to a source from Valero Corporetion, the installation caught fire.
As a result, several lines for the production of benzene (a component used to make the final product - styrene) had to be closed.
The line capacity is 55 thousand tons. product per year. But after 4 days, on 10.06.2021, the lines were restored and launched.
Note that the June contract price of styrene fell by nine percent. This is the first decline in the last 6 months.
Decrease in the cost of styrene in July 2021
The summer months are becoming the most profitable for America - for two months in a row, styrene has been supplied to the United States. The volume of raw materials is an order of magnitude larger than in the spring - therefore, prices are falling.
As a result, the price of the July contract decreased by 10% compared to June prices. And June is up 9% compared to May. This was the second fall in value in the last 8 months.
According to manufacturers, styrene production has resumed in full after the February storm and the cost of the product has decreased.
As a result, contract prices for benzene decreased by 24% in July, as demand became less than supply.