European styrene prices recovered from their year-to-date low at the end of the week, prior to the contract price settlement on Monday, tracking higher feedstock prices, sources said.
The European styrene spot price plummeted to a year-to-date low last Friday and trended even lower Monday-Wednesday, sliding to $1,144/mt on Tuesday, the lowest level since early December.
But spot prices edged higher Thursday tracking stronger feedstock benzene prices. The spot price was last assessed at $1,170/mt FOB ARA Thursday.
On Friday, bids for April were heard increasing to $1,180/mt, indicating further upward pressure, one working day before the contract settlement.
Several sources reported a major European styrene producer buying in the market on Thursday, where deals were concluded for April at $1,165/mt and $1,170/mt. Buy interest from the producer was heard absent on Friday.
A source said Friday sentiment turned bullish for styrene as benzene headed higher.
The benzene spot price was assessed at $811/mt CIF ARA Thursday, up $81/mt from $730/mt only a week ago.
April benzene bids were heard at $805/mt around lunchtime on Friday, indicating that prices remained at similar levels Friday.
The styrene April contract price is expected to settle on Monday, following the benzene contract settlement by the end of the business day Friday and the ethylene settlement concluded earlier in the week.
Despite the slight recovery in styrene spot prices, the market expects three-digit declines in the contract level.
The styrene spot price has dwindled through March, shedding $350/mt or 23% on Thursday from March 1.
Feedstock costs are also expected to decline. The ethylene settlement for April was a rollover at Eur1,050/mt and the benzene contract price is expected to fall by around $200/mt.
A source said Friday he expected a drop in April of Eur300/mt for the styrene contract price. Previously, sources agreed the styrene contract price is likely to fall by over Eur200/mt.
