28 March 2010 22:48 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS news)--The European April styrene contract price will move up by at least €70/tonne ($93/tonne) on feedstock increases and short supply, said a major supplier on Sunday.
Speaking from the sidelines of the International Petrochemical Conference (IPC), the supplier said that higher benzene and ethylene numbers for April meant that styrene values would have to move in order to keep up.
Benzene might settle at around $1,100/tonne as a compromise between numbers for the first and second half of April, the supplier said, adding that with ethylene at plus €20/tonne now, styrene needed to go up by €70/tonne at least from the March settlements.
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There are turnarounds planned in all three regions, the producer said. So this tightness will last throughout April and into May.
The producer explained that with ethylene prices in the
May could see styrene prices come down, added the producer. The market could lengthen after the shutdowns. However, crude was also an issue - if it stays around $80/bbl, then styrene could come off.
However, the producer said that it intended to keep the spread between benzene and styrene at a $200/tonne minimum, and would reduce operating rates if the market became too long.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
($1 = €0.75)
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