European styrene's export arbitrage remains closed despite ample supply, according to sources.
Although European styrene prices fell sharply this week, the export arbitrage to Asia is still not workable, according to a source.
European styrene's May spot price was assessed at $1,043/mt FOB ARA Thursday, while the CFR China H2 June price was assessed at $1,088/mt earlier on Thursday.
Freight costs have previously been quoted around $80/mt to ship product from Europe to Asia, indicating that it is not profitable for European sellers to export product.
This is in spite of length prevailing in the European market, as European supply remains plentiful and imports from the US are expected to arrive, according to sources.
Sentiment remained weak in the global styrene market.
"[The market is] getting longer elsewhere," a trader source said. He added that there were some maintenance works in Asia, "but the perception is that supply is to increase soon."
In the US, supply was heard increasing as plants came back from planned and unplanned turnarounds in April.
