Styrene monomer (SM) prices journey southward in Asia

Last week, Styrene monomer prices dropped in the Asian region.

An industry source in Asia on condition of anonymity informed a Polymerupdate team member, “The trend in the feedstock benzene market continues to be the primary influence on the styrene monomer (SM) market this week. A number of market participants have expressed a pessimistic outlook regarding the benzene market for the first half of 2025, resulting in a generally weak sentiment within the SM market due to anticipated limited cost support.”

Prices have fallen, primarily driven by negative trends in significant markets, particularly in China. The decline in these key markets has created a cascading effect, further contributing to the overall reduction in prices. Moreover, there has been a week-on-week decrease in benzene values, which is an essential feedstock for various chemical processes. This drop in benzene prices has intensified the downward trend, leading to further reductions in regional prices.

On Friday, CFR South East Asia SM prices were assessed at the USD 995-1005/mt levels, a drop of USD (-25/mt) from last week. CFR India SM prices were assessed at the USD 1000-1010/mt levels, a week on week declined of USD (-20/mt).

In Southeast Asia, most market participants cited stable market fundamentals, with demand continuing to remain subdued.

In India, a buyer noted that the fundamentals of demand and supply in the import market have remained relatively stable. At the same time, the domestic market experienced a modest increase in discussions, with offer levels rising at Kandla.

FOB Korea SM prices were assessed at the USD 960-970/mt levels, while CFR Japan SM prices were assessed at the USD 970-980/mt levels, both lowered by USD (-25/mt) from the previous week.

CFR Taiwan SM prices were assessed at the USD 995-1005/mt levels, down USD (-30/mt) week on week.

CFR China SM prices were assessed at the USD 970-980/mt levels, a fall of USD (-25/mt) from the previous week.

China's styrene monomer (SM) production facilities are currently operating at high rates, reflecting strong activity within the industry. This scenario allows SM manufacturers to take advantage of lower production costs and the potential for increased demand for their downstream products, as they can offer more competitive pricing in the marketplace. The combination of elevated operating rates and favorable raw material costs creates a more profitable landscape for SM producers in China, thereby improving their profitability and competitive stance.

Over the next two weeks, discussions regarding China's exports may experience a cyclical slowdown prior to the commencement of China-Korea negotiations for May shipments. Although China's shore-tank inventory saw a slight decrease this week, it remains at elevated levels. Despite several facilities in China and across Asia planning maintenance during the second quarter, the current market conditions do not indicate any supply constraints, likely due to limited downstream offtake.

Market participants hold varied views on the near-term market outlook. Some anticipate that the SM market will gradually stabilize in the upcoming weeks, as the prevailing pessimism in the feedstock benzene market becomes fully reflected in prices. Conversely, others believe that the emerging global oversupply of benzene could exert additional downward pressure on the downstream styrenics market until a new equilibrium in the fundamental-price relationship is established.

Benzene feedstock prices on Friday were assessed at the USD 815-825/mt FOB Korea levels, a drop of USD (-15/mt) from the previous week.

In plant news, Wanhua Chemical is in plans to take off stream its styrene monomer (SM) plant on April 5, 2025 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Shandong, China, the SM plant has a production capacity of 650,000 mt/year.