Asian SM prices surge despite S Korea’s turnaround season ending

摘要

Singapore — Asian styrene monomer prices continued to surge Wednesday on a flurry of short-covering by traders squeezed by earlier short-selling despite major exporter South Korea’s heavier-than-usual turnaround season drawing to an end. SM jumped $25/mt day on day to be assessed at $1,333.50/mt CFR China Tuesday, and was up another $33/mt at $1,366.50/mt at the morning peg Wednesday, according to Platts data. The price surge came despite major South Korean producer Yeochun Naphtha Cracking Center restarting its 290,000 mt/year SM plant at Yeosu Wednesday after month-long maintenance, marking the end of the country’s unusually heavy turnaround season. Seven of the country’s eight SM plants, or around 76% of its total SM capacity, were shut for maintenance for varying periods over March-May. South Korea is Asia’s main SM supplier and accounted for 38% of major SM consumer China’s imports in 2014, according to Chinese customs data. However, the return of South Korean supply to the market is being outpaced by stronger-than-usual demand, market sources said.