The styrene market arbitrage between Europe and Asia shut Tuesday as prices in the respective regions moved in opposing directions amid reduced production at LyondellBasell/Covestro's Maasvlakte propylene oxide styrene monomer (POSM) unit.
The CFR China marker price was assessed at $1,166/mt Tuesday, a decline of $10/mt. The European spot price was assessed at $1,140/mt FOB ARA Tuesday, a surge of $40/mt compared with Monday.
CFR China prices for the first and second half of January were assessed at $1,157/mt, only $17/mt above the European price. Freight between the two regions is about $75/mt.
The hike in the European styrene price was due to a reduction in styrene production, according to sources.
Output at LyondellBasell/Covestro's unit in the Netherlands has been hit by an issue at a downstream derivative unit, according to sources.
The issue at the derivative unit meant it could not receive PO and therefore production of POSM had to be reduced.
A December styrene deal in Europe was heard concluded at $1,140/mt on Tuesday as players scrambled for product.
Despite the closed arbitrage, a source said Tuesday a major seller was planning exports to Asia in December that would arrive in early February.
The arbitrage window between Europe and Asia had been open since November 8, according to S&P Global Platts data, as the European market was long.
