Almost half of the US refining capacity is concentrated in the Gulf of Mexico region. The violent hurricane “Harvey” attacked the coast of Texas, where the huge floods destroyed 11.2 percent of the US’s refining capacity, as well as a quarter of the US Gulf of Mexico’s oil production and caused the closure of the Texas coastal port. In addition, the United States accounted for more than 1/3 of the chemical production capacity was forced to shut down.
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American styrene plant
US local styrene production capacity of about 4.9 million tons, up to now, involving parking devices up to 2.53 million tons, and another 1.124 million tons of reduced load operation, although some factories said that due to the main supply downstream or contract-based users, On the market supply of supply has little effect, but it is undeniable that a substantial reduction in supply. For the Chinese styrene market, it can be considered “icing on the cake”, for the recent domestic market prices pulled up further played a further boost with the.
The United States as Asia’s main source of ocean cargo supply, China’s styrene imports for a long time plays a decisive role. However, in 2017 the United States exported to China, the total amount of styrene plunged from January to July customs import data, China’s total imports from the United States 152,900 tons, compared with 292,200 tons last year dropped 139,900 tons The The main reason is that the United States in the first quarter of the local multi-sets of large units to stop the maintenance of their own supply caused by a sharp decline in their exports, and even once the Asian exports to the United States anti-arbitrage phenomenon; on the other hand is due to high prices in Europe, the United States to Europe Substantial increase in supply, the corresponding reduction in the arrival of the Asian market.
In addition, we have analyzed in the previous period, Europe imports from the United States about 2-3 million tons per month, but in August the total flow of goods in the range of 4-6 million tons, resulting in the US local supply reduction. In the first half of September, US cargo was already sold and most of it was shipped to Europe. As a result, the earlier Asian Ocean Ocean Cargo supply to maintain a low level.
On the whole, “Harvey” hit the United States caused floods, resulting in the local part of the styrene plant shut down or down to bring a substantial decline in production, leading to recent exports blocked, relatively speaking, for the supply of the tight European market The impact of more direct, cut-off before the European spot styrene valuation has soared to 1488.5 US dollars / ton FOBARA, the last round of highs in the March 7 closing 1498 US dollars / ton FOBARA.
For China, traders have already predicted that there is little support for ocean-going cargo arrivals from Asia in September-October due to a decline in China’s supply in China in 2017, which has been affected by changes in arbitrage windows in Europe and the United States earlier in Europe and the United States. Short-term supply of styrene in China is not a big change, a direct impact on the business optimistic about the market to enhance the expected, and a small amount of cargo in September to postpone the arrival of the problem. Moreover, the recent European and American market stage higher for the current round of Asian market strength provides a boost can not be ignored and has been reflected in the current price. Of course, the late recovery of the US device and the European market price trends, will directly affect the ocean cargo on the Asian region more long-term supply.
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