The European styrene market is in a contango into the first quarter of next year amid expected maintenance works at several units, according to sources this week and indications seen in the market.
Q1 indications emerged this week. On Thursday, October and November bid-offer ranges were heard at $1,180-1,210/mt, but Q1 ranges were at $1,190-1,225/mt, indicating a $10-15/mt contango. Deals were also heard concluded for Q1 as traders took position in the market in anticipation of the turnarounds.
Sources said that several units in Europe were due to go on maintenance. Although the exact details have not been confirmed, sources said that the works were due and could not be delayed further after Q1.
In Europe, styrene demand typically increases after the Christmas and New Year holiday break, which contributed to bullishness for Q1.
In addition, January demand is expected to firm in China as buyers there typically restock styrene prior to the Chinese New Year holiday period.
In 2018, the lunar New Year holiday will be on February 16.
The 5-30 day forward spot price was assessed at $1,185/mt FOB ARA Thursday, up $5/mt on the day.
