NPRA ’10: Europe styrene prices to fall as tight market eases

28 March 2010 23:28  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--European styrene values may begin to come down in May and into the third quarter as market tightness eases, a major producer said on Sunday.

“The market will start to lengthen again in May after the shutdowns are over,” said the producer. “If crude stays around $80/bbl (€60/bbl), then we expect to see styrene values come down moving into Q3.”

However, the producer said that it was intending to maintain a $200/tonne minimum spread between benzene and styrene, adding that it would reduce output if the market began to show signs of oversupply.

“There has been a lot of pressure on styrene from the benzene market,” the producer explained. “Even though styrene volumes were reduced by 7-8% in 2009, the benzene market is still tight.”

Additionally, the producer felt that while it expected styrene numbers to soften later in the year, much would depend on downstream demand.

“If propylene oxide demand picks up, then we will see the POSM plants running hard,” the producer said, speaking from the sidelines of the International Petrochemical Conference (IPC).

“This may keep styrene numbers strong.”

Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.

($1 = €0.75) 

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By: Truong Mellor
+44 208 652 3214

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