The European styrene market has looked increasingly bullish this week as concerns strengthened about availability of styrene in the first quarter of next year, as well as support from feedstock benzene prices, according to sources this week.
The 5-30 day forward styrene spot price was assessed Thursday at $1,253/mt FOB ARA, up from $1,202.50/mt the previous Thursday.
Since late October, sources had noted concerns about availability of styrene in Q1 2018, with trades for Q1 already seen at the time. Concerns resurfaced again this week as Q1 trades were heard at a significant premium to November-December prices this week.
Three major styrene production units are expected to go on turnaround in Q1 2018: Repsol's Tarragona propylene oxide/styrene monomer unit, Total's 600,000 mt/year Gonfreville styrene unit and BASF's 550,000 mt/year unit. Other units in Asia and US are also expected to have works.
As a result, traders were heard taking positions as they expected tightness in the market in Q1.
In addition, feedstock benzene prices have been on the rise, tracking strength in crude oil prices and tightness in the prompt market.
The benzene spot price was assessed Thursday at $965/mt CIF ARA, up from $909/mt the previous Thursday.
