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.
“This may keep styrene numbers strong.”
($1 = €0.75)
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