Spot styrene was higher for the first time in three weeks Monday, rising 1.45 cents/lb to an assessment of 63.05 cents/lb FOB US Gulf Coast on a 16-cent hike in feedstock benzene.
May benzene shot up to 399 cents/gal FOB USG on a higher energy complex and bullishness in European benzene that spilled over to US markets, sources said. European benzene on a CIF Amsterdam-Rotterdam-Antwerp basis jumped $30.50/mt to $1,201/mt CIF ARA on demand for prompt material and June NYMEX crude settled up $1.09 to $92.57/barrel.
Spot styrene typically increases 1 cent per every 10-cent increase in benzene, according to industry sources.
Styrene last rose on a day-to-day basis on April 30, when it was assessed 0.05 cents/lb higher to 65.95 cents/lb FOB USG.
Since April 30, styrene has dropped 4.35 cents/lb to an assessment of 61.60 cents/lb FOB USG Friday, its lowest level since January 6 when it was assessed at 61.60 cents/lb FOB USG, according to Platts data. The fall in styrene has coincided with a drop in spot feedstock benzene prices.
Spot benzene fell 22 cents from May 11 to an assessment Friday at 383 cents/gal FOB USG, primarily on lower June NYMEX crude -- which fell $4.65 to $91.48/barrel over the same time frame due to macroeconomic concerns over Greece's standing in the eurozone and China's underwhelming economic growth.
Sources said styrene demand is weak, but supply remains ample. Sources added that tanks are full despite production rates for producers running around 70%.
With European styrene monomer higher day-on-day to $1,425/mt FOB ARA for June and freight at $50/mt, sources said an arbitrage window to Europe is closed for now; however, exports to Europe are likely if European SM spot continues to rise over the next week, a source said.
