Bullish Europe prices hit US-Asia styrene window

19 February 2008 08:09  [Source: ICIS news]

SINGAPORE (ICIS news)--The US to Asia arbitrage window for styrene monomer (SM) remained mostly shut on bullish prices in European markets, with spot values rising by at least $125/tonne (€84.8/tonne) since early January, traders said on Tuesday.

"Most US cargoes were headed for Europe given the bullish prices in that region," a Korean trader based in China said.

Around 70,000 tonnes of US material were heard shipped to the Europe for arrival in March.

Spot values had increased sharply to $1,470-1,500/tonne FOB (free on board) Rotterdam from $1,335-1,345/tonne in early January, according to global chemical market intelligence service, ICIS pricing. 

"With the correction in the Asian SM market during December 2007, arbitrage opportunities to Asia had become limited," said another trader in China, adding that so far there was no news of US cargoes coming to Asia during February and March.

Spot prices declined nearly $100/tonne to $1,280-1,310/tonne CFR (cost and freight) China in December. Spot numbers in the US hovered around US cents 62-64/lb FOB US Gulf, or $1,366-1,411/tonne FOB US Gulf.

Asian prices are currently at $1,380-1,400/tonne CFR China with freight costs from the US to Asia at $60-80/tonne.

($1 = €0.68)

By: Clive Ong
+65 6780 4359

< previous article(ICIS Chemical Business podcast November 2, 2009)

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